We’re seeing some variance in commodity prices, but unleaded gasoline is at 11-month highs. I take a look at the charts in the video below.
This is the chart that’s most interesting. I’m not exactly sure why we’re seeing oil headed down while unleaded is headed up and copper is headed down, along with gold and silver, but if there’s one commodity that actually is rather bullish it’s unleaded gasoline.
[You can see this not only in the prices of the unleaded gasoline futures contracts, but in the recent 3.5% spike in the United States Gasoline ETF (NYSEARCA:UGA).]
If you throw on the Elliot wave count, as I show you on the chart in the video, unleaded gasoline has been in a rectangle pattern coiling for 2011, 2012 and now into 2013. It’s a weekly chart, so we have to keep that in mind. I’m not talking about a breakout today. I’m not even talking about a breakout this month, maybe not even in the next couple months because it’s a weekly chart. It’s going to take some time, but you can also see that from the highs, there isn’t any bearish divergence.
It just looks like where you come from the lower left of the chart, you go into a pattern and continue coiling until eventually it resolves. In this case, it looks to resolve to the upside. So, copper, oil, gold, and silver have all been trashed and look to continue to be trashed.
While in 2012, traders could have been bullish on corn or wheat due the drought in the Midwest, but that’s dissipating for the most part because all those commodities are tanking and it won’t stop raining and snowing in the Midwest. So, this year the one commodity that actually is bullish out of the sea of commodities is unleaded gasoline.
InvestorPlace advisor John Lansing tracks the charts all day and offers expert technical analysis in his day trading, options and trading services: Power Trading at the Open, Parabolic Options and Trending123. For more information on which service is for you click here.