{"id":21254,"date":"2023-10-04T07:30:15","date_gmt":"2023-10-04T11:30:15","guid":{"rendered":"https:\/\/www.jeffclarktrader.com\/?p=21254"},"modified":"2023-10-04T07:30:15","modified_gmt":"2023-10-04T11:30:15","slug":"a-dominant-move-in-refined-gas-is-imminent","status":"publish","type":"post","link":"https:\/\/jeffclarktrader.com\/market-minute\/a-dominant-move-in-refined-gas-is-imminent\/","title":{"rendered":"A Dominant Move in Refined Gas is Imminent"},"content":{"rendered":"

Last week, we looked at the recent action in oil. It looks like a reversal<\/a> may have already started.<\/p>\n

So, today we’ll look at a different energy market. One that looks primed for a big move…<\/p>\n

Refined gas is used in vehicles, appliances, and even in products like paints and pesticides.<\/p>\n

While it’s widely used, it’s not exactly widely traded…<\/p>\n

See, many traders have profited from the well-known crude oil and natural gas markets. You may have even traded these volatile markets before.<\/p>\n

But there are comparably fewer traders who have dipped their toes into the gasoline market.<\/p>\n

So, what makes gas (technically, refined gas) so attractive to technical traders?<\/p>\n

It’s the nature of the price action and the lucrative opportunities it presents.<\/p>\n

Gas certainly has moments where the price chart looks like a complete mess. But in my experience, the market eventually settles down. When it does, the opportunities are epic.<\/p>\n

And we’re right on the cusp of such an opportunity right now…<\/p>\n

As you see below, gasoline has recently broken out of a classic chart pattern. At the same time, the market has broken below a very important technical indicator.<\/p>\n

Let’s take a closer look at the chart below:<\/p>\n

<\/p>\n

\"Image\"<\/p>\n

The chart pattern mentioned earlier is known as a rising wedge (blue lines). This is a continuation pattern, where price consolidates before following its trend. In the case of gasoline futures, the dominant trend is to the downside.<\/p>\n

Gas is a lot cheaper today than it was in June 2022. Back then, gas was trading around $4.30 per gallon. Today, the price is much closer to $2.40.<\/p>\n

That’s nearly a 45% decline in price… And it could still fall further.<\/p>\n

Supporting this view is that gas has broken out of the wedge and is holding below the 200-period moving average (MA).<\/p>\n

The 200 MA is a powerful trend indicator. Refined gas breaking out of the wedge and trading below the 200 MA should put traders on notice.<\/p>\n

The next downside support is the weekly timeframe’s 200 MA. That level comes in at $2.16, which is a further decline of over 9% from current prices.<\/p>\n

What’s going on with gasoline right now is a textbook example of a bearish breakout, and traders should look at this as an opportunity to play a further fall.<\/p>\n

But remember: Nobody takes a trade expecting it to lose. Even the very best setups will fail.<\/p>\n

Risk management is the most important part of trading. That’s regardless of whether you’re trading a commodity like gasoline, a tech stock like Microsoft, or the EUR\/USD currency pair.<\/p>\n

You should never risk more than you’re willing to lose on any single trade. No matter how tempting the setup.<\/p>\n

Happy trading.<\/p>\n

\"Signature\"<\/p>\n

Imre Gams<\/p>\n

<\/p>\n

\n

READER MAILBAG<\/h2>\n<\/div>\n

Have you explored these markets?<\/p>\n

Let us know your thoughts – and any questions you have – at feedback@jeffclarktrader.com<\/a>.<\/p>\n

<\/p>\n","protected":false},"excerpt":{"rendered":"

Last week, we looked at the recent action in oil.<\/p>\n","protected":false},"author":55,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"ep_exclude_from_search":false,"service":"","footnotes":""},"categories":[1],"tags":[],"publication":[10],"person":[76],"newsletter-type":[],"ticker":[],"class_list":["post-21254","post","type-post","status-publish","format-standard","hentry","category-market-minute","publication-market-minute","person-imre-gams"],"acf":[],"_links":{"self":[{"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/posts\/21254","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/users\/55"}],"replies":[{"embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/comments?post=21254"}],"version-history":[{"count":0,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/posts\/21254\/revisions"}],"wp:attachment":[{"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/media?parent=21254"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/categories?post=21254"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/tags?post=21254"},{"taxonomy":"publication","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/publication?post=21254"},{"taxonomy":"person","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/person?post=21254"},{"taxonomy":"newsletter-type","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/newsletter-type?post=21254"},{"taxonomy":"ticker","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/ticker?post=21254"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}