One of the things I hate is paying a lot of money for gas. The only thing that makes it less fun to pump gas is having to do it in cold weather, which I’m personally getting really tired of. Luckily it appears we might be seeing some hope for gas prices to ease up in the next few weeks. Below we have a chart of unleaded gasoline. No, this isn’t the cost of what you’ll see at Shell or BP but this shows the actual commodity price of spot unleaded gas.
The recent rise in spot gasoline prices has taken us to the previous resistance around the $3.05-$3.10 area back in August and September. This level also happens to be the 61.8% Fibonacci retracement level. As always when we find a price hitting support or resistance we turn to our trusty RSI indicator to check in on momentum. In the case of unleaded gasoline it appears momentum has put in a slight negative divergence – making lower highs while price consolidates.
I’m at about three-fourths of a tank right now and I’m interested to see if gasoline prices will be lower by the time I need to fill up. It appears that might be the case but I will be keeping an eye on resistance and see if gas does in fact get above $3.10.
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