Pain at the pump close at hand?

Posted by Chris Kimble on 12/29/2010 at 9:44 am; This entry is filed under Gasoline.
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Gas prices could rocket up again if key resistance at the $2.50 level is taken out. Potential Right Shoulder looks to be forming right now in the chart below.  A good sign for the economy???

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The last time gasoline futures broke above $2.50, prices became pretty painful at the pump and many feel had a negative impact on the overall economy back in 2008.  If you don't want to pay a ton at the pump, best hope this right shoulder holds just above current prices!

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2 Comments

  1. Greg December 29th, 2010 at 10:40 am

    Thanks for the post. The verbage seems bullish but given the pattern I would have expected bearish commentary. Do you consider head and shoulders void if there is a price break above shoulder level?

  2. Chris Kimble December 29th, 2010 at 1:51 pm

    Greg…The pattern is bearish, if the read is correct and yes the pattern usually is a bust if the right shoulder is broken to the upside. I don’t trade gas futures, yet an upside break of the highlighted resistance would be bullish.

    FYI-XLE (energy ETF) is breaking out to the upside!