This morning, the United States Gasoline Fund (NYSEARCA:UGA) is trading higher by 0.08 cents to $57.19 a share. The UGA is just $1.00 shy of last weeks 52 week high of $58.16 a share. Short term traders should watch for intra-day resistance around the $57.50 area. Should the UGA pullback intra-day, the $56.80 level will be short term support. The UGA remains very strong on the daily chart at this time.
Investors must remember that high gasoline prices are a direct tax on the consumer. It is important to note that consumer spending accounts for about 70.0 percent of the gross domestic product (NYSEMKT:GDP) in United States. The average price of gasoline at the pump in the U.S. this week is $3.81 a gallon. The average price of gasoline in California is around $4.25 a gallon.