Unleaded Gas held key support at the $4.00 per gallon level before reversing higher to form a potentially bullish pattern for the week ahead. The price has been meandering inside of a large downtrend that forms a Flag chart pattern on the hourly time frame.
/
After rebounding from the price support shown at $3.98 per gallon, the market pressed gradually higher to the upper resistance trend line created by the flag. Monday's session should either confirm a breakout by a move higher in the gasoline (which should be accompanied by a commensurate rise in crude oil), or re-establish this trend line as key resistance by falling back towards the middle of the pennant. Traders should be watching this near term resistance level for confirmation if a breakout occurs, as it could signal the end of the current downtrend which began at the $4.20 per gallon level. Weakness coming into the market near $4.06 per gallon would set up for a pullback towards $3.94 per gallon to form a continuation of the Flag chart pattern.

For further information on this and other Autochartist products, visit our website at www.autochartist.com

DISCLAIMER: The Autochartist service includes chart pattern identification in respect of foreign currencies, commodities, equities and stocks. There are potential risks relating to investing and trading. You must be aware of such risks and familiarize yourself in regard to such risks and to seek independent advice relating thereto. You should not trade with money that you cannot afford to lose .The Autochartist service and its content should not be construed as a solicitation to invest and/or trade. You should seek independent advice in this regard. Past performance is not indicative of future performance. No representation is being made that any results discussed within the service and its related media content will be achieved. All opinions, news, research, analyses, prices or other information is provided as general market commentary and not as investment advice. Autochartist, MDIO Software, their members, shareholders, employees, agents, representatives and resellers do not warrant the completeness, accuracy or timeliness of the information supplied, and they shall not be liable for any loss or damages, consequential or otherwise, which may arise from the use or reliance of the Autochartist service and its content. This e-mail may contain information that is confidential. If you are not the intended recipient, you must not distribute, copy, circulate or in any other way use or rely on the information contained within the entirety of this email. Please delete the e-mail and any attachments and notify us immediately.