FxNews—Gasoline is trading within a bearish flag pattern, as shown in the daily chart below. The downtrend was triggered after bulls failed to break the $2.09 resistance level (October 22 high). As of this writing, gasoline is trading at approximately $2.03, approaching the October 18 low of $2.01.
Gasoline Analysis – 8-November-2024
Zooming in on the 4-hour chart, we note that the bears are encountering the ascending trendline, which acts as the active resistance. Meanwhile, the Awesome Oscillator histogram is red, nearing the zero line from above, indicating that bearish momentum is strengthening. Furthermore, the RSI 14 dropped below the median line, signaling a bearish divergence that could lead to additional losses.
Overall, the technical indicators suggest that the primary trend is bearish and that the downtrend may resume.
Gasoline Price Forecast – 8-November-2024
The market outlook remains bearish as long as the price remains below the $2.09 resistance level. That said, a new bearish wave may form if sellers stabilize the price below the immediate support at $2.04, which coincides with the 38.2% Fibonacci level. In this scenario, the next bearish target could be $2.01 (October 18 low), near the 23.6% Fibonacci.
Furthermore, if the gasoline price dips below $2.01, the downtrend could extend to $1.97. Please note that the bearish outlook would be invalidated if gasoline’s value exceeds $2.09.
- Support: 2.01 / 1.97 / 1.94
- Resistance: 2.09 / 2.11