Oil and Gasoline Price Uncertainties
gasoline standards. The strong U.S. economic expansion has been slowing, and may continue to slow in coming months.
Oil and gasoline may have hit short-term tops on Tuesday, while it seems oil stocks had “blow-off” tops (opposite of capitulations) Wednesday and Thursday. Consequently, oil stocks may be in a volatile range over the next few weeks, along with the stock market in general.
The first chart below is an OIH weekly chart. Last week, OIH, an oil ETF (i.e. basket of oil stocks) traded between 112 and 122. I suspect, the volatile trading range will continue, while oil stays in the $60s. OIH has major resistance in the low 120s and major support in the low 110s. So, there may be excellent opportunities to trade OIH options (or options on other oil stocks) next week.
The second chart is an SPX daily chart. There’s significant short-term support around 1,200 (i.e. psychological support, 200
