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Strategies & Market Trends : Technical analysis for shorts & longs -- Ignore unavailable to you. Want to Upgrade?

To: Johnny Canuck who wrote (44777)	5/3/2008 6:42:16 PM
From: Johnny Canuck	Read Replies (3) \| Respond to of 69307

Gasoline hits a new high. Technically we want to see a 2 follow through days to confirm the new high. It might then go higher with a re-test on the old high at some point. Alternatively, we will see the price correct downward for here with no confirmation of the new high. That would mean significantly lower price going forward. It is hard to correlate the technicals with the underlying at this point as a new high would usually correspond to a reduction in consumption, but China and India are still growing in consumption right now. Till the slow down in the USA rippled through those two economies, we won'tsee any significant reduction in the price of gas. At the same time a lot of people in North America still have not adjusted their driving patterns. They are absorbing the price increases. How long they can do that will determine when the music stops.