Looks like we're hitting a line of resistance. We might see a correction..most likely forming into a wedge or flag for a few weeks. What it means is that the price of gas might stay the same for the next month. Guess I won't try to wait before filling up.
2 comments:
Maybe. Remember that price of gas and crude are not 100% correlated. A lot has to do with refining capacity and at this time of year this can easily be a choking point pushing gasoline up even if oil doesn't move.
Good point, Mike. I like to say that price of gasoline moves more like a 20-day Moving Average after the price of Crude, except it will jump up within only a few days after any price spikes.
And we saw how the price of gas moved separate from the price of crude only several months ago, when the "news" was about trading in the US is not correlating with the price of imported crude.
Generally speaking, though, I use the price of crude as a trend indicator for the price at the pump.
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