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!
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!
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?