U.S. Gasoline Signals Drop Toward $2.00 as Futures Complete Bearish Reversal Pattern
Updated
Updated · Reuters · Jun 16
U.S. Gasoline Signals Drop Toward $2.00 as Futures Complete Bearish Reversal Pattern
1 articles · Updated · Reuters · Jun 16
Summary
U.S. gasoline futures have fallen more than 20% from their April Iran-war peak, and chart action now points to another leg lower toward $2.00-$2.10.
The bearish signal is a head-and-shoulders pattern: a left shoulder near $3.40, a $3.82 peak on April 30, a right shoulder around $3.20-$3.25, and a neckline near $2.90.
RSI momentum also points lower and failed to confirm the April high, reinforcing the view that the rally was losing steam, though near-oversold readings suggest the pattern may need more time to finish.
The latest slide was helped by the announced deal to end hostilities, but gasoline remains sensitive to Iran-war developments; a rebound above $3.40 would invalidate the bearish setup.