Despite being a slow day overall, one chart in the commodities space had traders gassed up. Pun intended. 🙃
That commodity is gasoline, which is heavily tracked due to its impact on consumer confidence and the economy. And most recently, there’s been a significant decline in prices that’s helped cheer people up ahead of the holidays—case in point: the headlines below. 👇
However, some traders and technical analysts believe the market could start to heat up again.
They’re focusing on this chart of gasoline futures, which shows that 2.10 to 2.20 has been a significant transition area for the market since 2015. And now, with prices back at those levels following a sharp decline, some market participants are betting that buyers will reemerge again and push prices higher. 🐂
Meanwhile, fundamental analysts argue that recession fears, the winter season, and other fundamental factors are likely to keep a lid on gasoline going forward. 🐻
As always, we’ll have to wait and see. But we felt the need to mention this chart because regardless of which direction it decides to go, it will definitely be on traders’ and consumers’ radars. 👀