The price of gas is having a significant economic impact. Ask a trucker or courier what they're paying for a tank of gas and you'll be sorry you did. Oil and gasoline both followed commodity prices on the downside last week but they are the only ones to undergo a sharp rebound. That's bad news for those who are headed to the pumps today!

Swift declines in markets are considered to be bull market declines. We've never actually seen a study to verify this however. Even if it's generally true it is likely difficult to apply effectively in the real world of trading. For now, let's run with the idea that the sharp decline in gasoline fits the mold. Oil has technically broken its up trend and it is likely going to struggle over time in an attempt to make a full recovery. The up trend is defined by the 50 day moving average (the red line). The decline was 17% from the high, falling in just five sessions. As it turns out the 50 day moving average is also a 50% retracement of the decline, so expect oil to stall at this level which is around $105/bbl.

Gasoline was one of the few commodity markets that did not undercut the 50 day moving average. Technically, that implies gasoline is still in an up trend.

We're using the United States Gasoline Fund E.T.F. (UGA) as a representation of gasoline since gas futures can't be traded in registered accounts. You can see UGA bounced off support, quickly, and has nearly recovered the entire decline in just three sessions. That's power! A consolidation of some kind may now develop as it runs into resistance near the high. Historically, that's how investors act. Then you can anticipate more upside as gasoline has now pumped its way into first place as the commodity market's strongest performer. In this market, strength has been the place to focus trades in.

This is the type of trade we use precise and reliable signals for timing buys and sells. If you want to see it in action, for UGA and other markets including the best stocks in the market, try the free subscription. Enter promo code may11; no credit card info. is required. Enjoy and if you have any questions use the live chat feature found through out the extensive investment information service for investors who manage their own portfolios as well as fund managers.  https://www.investorbootcamponline.com/_app/bootcamp/index.php?a=addUser

Investor Boot Camp Online is the premier investment information and trading strategies service. The extensive research covers U.S. and Canadian equity markets, the bond market, commodities and currencies.