-- Posted Friday, 30 March 2007 | Digg This Article | Source: GoldSeek.com
Rick’s Picks
Friday, March 30, 2007
“Phenomenally accurate forecasts”
Since gas at the pump seems primed to surge above $3.00 before the summer driving season even begins, I thought it might be a good time to check some NYMEX charts to see whether they concur. In fact, June Crude is hovering near an important price target at 68.76, having spiked to a 68.09 top earlier in the week. My hunch is that if it blows past the higher number – meaning, exceeds it by more than about 30-40 cents -- it will be signaling significantly higher prices over the near- to intermediate-term. This is by no means a foregone conclusion, and it is still possible that Tuesday’s parabolic surge will prove to have been the last gasp of the 2007 bull.
Prices at the pump have risen fairly sharply in recent weeks and are currently averaging around $2.67 nationally for a gallon of regular. But that’s liable to seem cheap if the price of a gallon of crude is indeed headed above $70. (Note: the record, unadjusted for inflation, was $78.40 a barrel last July).
The chart above shows the uptrend that has given us the 68.76 target, a Hidden Pivot. If it were to be breached there is just one more such pivot that could stop a surge to new record highs: 72.38. But the lower number is where the real battle is going to occur, and my strong hunch is that if it gives way, RV road-trippers, along with the rest of us, are going to be cursing the refiners from July Fourth till Labor Day and beyond.
The content on this site is protected
by U.S. and international copyright laws and is the property of GoldSeek.com
and/or the providers of the content under license. By "content" we mean any
information, mode of expression, or other materials and services found on GoldSeek.com.
This includes editorials, news, our writings, graphics, and any and all other
features found on the site. Please contact
us for any further information.
Disclaimer
The views contained here may not represent the views of GoldSeek.com, its affiliates or advertisers. GoldSeek.com makes no representation, warranty or guarantee as to the accuracy
or completeness of the information (including news, editorials, prices, statistics,
analyses and the like) provided through its service. Any copying, reproduction
and/or redistribution of any of the documents, data, content or materials contained
on or within this website, without the express written consent of GoldSeek.com,
is strictly prohibited. In no event shall GoldSeek.com or its affiliates be
liable to any person for any decision made or action taken in reliance upon
the information provided herein.
OilSeek.com