FxNews—Gasoline prices bounced from $1.955 mainly due to the RSI’s bullish divergence and the Stochastic’s oversold signal, which promised a trend reversal or the beginning of a consolidation phase.
As of this writing, Gasoline trades at approximately $2.02, claiming above the 50% Fibonacci retracement level.
Gas Prices Climb RSI and Stochastic Stay Bullish
The recent hike in Gasoline prices caused a bullish fair value gap, as the 4-hour chart above shows. Furthermore, the primary trend should be considered bullish because the prices are above the 100-period simple moving averages.
As for the other technical indicators, the Awesome Oscillator flipped above the signal line with a green histogram, meaning the bull market should prevail. Additionally, the RSI 14 and Stochastic depict 59 and 67, respectively, hinting at the weakening of the bear market.
Overall, the technical indicators suggest the primary trend is bullish and should resume.
Prices Poised to Rise Past $2.03
The immediate support rests at $2.0, neighboring the 38.2% Fibonacci level. The trend outlook should be bullish as long as the prices exceed the support. That said, the next bullish target could be the 61.8% Fibonacci at $2.03. Furthermore, if the buying pressure exceeds $2.03, the uptrend could spread to the 78.6% level at $2.06.
Please note that the bullish outlook should be invalidated if the gasoline prices fall below the 38.2% Fibonacci level at $2.0.
- Support: 2.0 / 1.99
- Resistance: 2.03 / 2.06