Technical forecast for RBOB

rbob2

RBOB Gasoline tested support at 309/308.50 for some profit taking as expected. We predicted a bounce from here & a low for the day & we bottomed exactly here in fact. We fell just a fraction short of 314.50/315 for a selling opportunity. Any move towards this area today could give us a second chance but use stops above 316 as a break higher could target 317.80-319.

We are however very overbought on the daily chart & may retest support at 309/308.50 today. A break lower cannot be ruled out and could target 306.70. If this does not hold the downside look for a buying opportunity at 304.70/304.20 with a low for the day expected.

Jason Sen began his career in the options pits on the trading floor of LIFFE in 1987 at the age of 19, making markets on his own account. In 2001 when the trading floor closed he successfully made the transition to day trading on computer screens. Jason always had an interest in technical analysis throughout his trading career but began to study this area in depth from 2006. www.daytradeideas.com has established itself as the leading provider of... More