THO1! trade ideas
Inter-commodity Spread (Dec20 +RB -CL)Looks like a good opportunity is coming up on this one. Fading the Dec20 RB(buy) CL(sell) Combo IC spread by selling into strength seems reasonable.
Gas future recovery lost all momentum, 200 SMA resistance?Hello Traders!
The price of Gasoline Futures has recently returned to its normal range but the momentum of its recovery seems to be completely used up. The 50 SMA may have recently crossed over the 100 SMA, but both the MACD as well as the RSI look rather pessimistic, both indicating bearish divergence. I would be very surprised if the price crossed over the 200 SMA, which has acted as resistance in the past, but let's better wait for the next few candles before we trade on weak signals.
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Please, maintain proper position sizing and risk management!
COT INDEX - POSSIBLE BOTTOMThe timing of commercials players trading Gasoline RBOB can be described as superb, with just one wrong signal since 2007. The COT Index possible bottom signal triggered this week, but before we jump in the trade there are some considerations of the actual scenario that need to be taken into account during our decision to take or not the trade.
I just read two articles one from the eternal bear ZeroHedge and another one from WSJ, and while 99.99% of traders and analysts would believe this is super bearish Oil. Such interpretation in the vacuum can lead to inaccurate conclusions. OPEC made a huge move with a record production cut to offset the demand destruction, and this can happen again. The ease in oil cuts is because they are anticipating demand recovery. This is the point where the confusion is made. There is a HUGE difference between demand and consumption. The former refers to the amount of a good that will be used at any given price level, and with supply determines the price, while the latter is the amount of a good used and its determined by the price.
An increase in demand means that more will be consumed at any given price level. Factors that might affect demand include disposable income, consumer tastes, and the price of substitute goods but, by definition not price. (Schwager & Etzkorn, 2017)
So the increase in production does not mean more of the product will flood the markets and pressure price down. The expectation is more consumption is ahead of us.
Another mistake that I see when taking this event of the increase in the output in production as bearish is the lack of perspective. What we saw months ago as a RECORD production cut, this increase is a drop in a bucket and has all elements to get unnoticed by the markets, in fact, it can have the opposite effect because it’s adding positive expectations of world economies recovery.
I am holding a BULLISH view on Gasoline RBOB.
Assets with BIG correlation with GASOLINE
Apache Corp NASDAQ:APA
Platinum NYMEX-PL1!
Avnet, Inc. NASDAQ:AVT
Precision Drilling Corp NYSE:PDS
Read the Full Report
RB1! bounce of support lineConfirmation candle shows repeating uptrend. Momentum is at the lowest point.
P:L , 2:1
$RB -GASOLINE looking for the gap to fillCovid energy collapse now seeing a big rebound. Still got a long way go to see this Outcome eventuate. Gaps like this are made to be filled.
Gasoline futures (RB) - Updated EW count Gasoline futures (RB) is in correction ABC from the top as zigzag, which is in the 5th wave of C down as shown in chart.
Gasoline futures (RB1! ) - Updated EW count Gasoline futures (RB) has completed its 5th wave of the impulse sequence as shown in chart, which matches with crude oil count, unless it unfold in further extension.
EIA Data Shows Cuts in Both Crude & Gasoline InventoriesHeadlines:
- EIA Data Shows Cuts in Both Crude & Gasoline Inventories
- Gasoline Futures Return to 0.85 Handle as Prices Fall -7%
- US Indexes Fall Along with Energy Sector Down -4%
Gasoline futures (RB) - ABC wave patternGasoline futures (RB) is in ABC flat wave pattern from major bottom as shown in chart. Wave 3rd of C up is in progress and will be ending soon. After that wave 4 will be correct it down, which may be flat or triangle. On completion of 4th wave down, one more upward movement as wave 5 would be there on chart. Plz share your comments if you have any opposite wave count ?
Gasoline - good mid. term investmentWith the fall of quarantine, road traffic is back and demand is rising accordingly, and gasoline prices are recovering.
Less manipulations than the Oil market, much safer trade instrument and good ROI. #Gasoline #RBOB
Gasoline futures stable while WTI swings $UGA $USOPrompt-month RBOB futures have been very quiet relative to the antics in oil. 75 cents appears to be very important.
Gasoline Futures See 0.7250 Resistance Level as Prices Retrace- Gasoline has paired some gains heading into the new week with it falling down to the 0.6570 level as we near the London open.
- Much of the pressure in lower prices has been due to the ongoing demand issues we are seeing within the United States, however, we have seen prices in recent week pick up from lows around mid-0.40 level.
- As of this week, however, we have seen prices retrace lower after touching a key level of resistance around the 0.7250 level.
API Shows Gasoline Inventory Increase of 2.226 Million BarrelsAPI Release this week has shown a gain up for the week with Gasoline posting a build of 2.226 million barrels
Gasoline Futures Approaching 0.725 Price Handle- Gasoline is now approaching the important 0.725 price handle once again
- This level has been seen in the past as a level of strong price resistance
