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In the first week of January 2008, gasoline prices peaked at about $2.55 per gallon at the wholesale level in New York Harbor. Six weeks later, prices hit a low of about $2.18 per gallon, and have risen to about $2.85 now (April 22). There were clues left behind, which forecasted both the decline and the subsequent rise. What were they? In the first week of January, the Japanese Candlestick bar for that week was a classic "Shooting Star" pattern, which is bearish; and at the low a few weeks later, we saw the same pattern in reverse: a "Hammer," which is bullish. In each instance, the patterns "worked," in that they accurately predicted the course of prices yet to come. Right now, we see ak perfect tall white candle, which is extremely bullish; and at the moment there appears to be no reason to suspect that gasoline prices will decline anytime soon. Already, we read of people giving up their cars and going to mass transit in order to get to work; but in cities such as Los Angeles, in many cases there is just no substitute for the automobile for commuting to work. Quite possibly, there will be an increasing trend toward car pooling as a means to enhance efficiency in transit and to save money.

This entry was posted on Thursday, April 24th, 2008 at 10:20 am and is filed under Miscellaneous. You can skip to the end and leave a response. Pinging is currently not allowed.