ICE Gasoline March Contract - Forecast for 02/05 by Daytradeideas.com

Gasoil was held by 1008 resistance in an overbought market and we predicted a drift lower to 998.50 and a low for the day here. We got very close but only reached 999.50 so we do expect to see 998.50 tested today. We should hold here initially but we cannot rule out a break lower later in the day for a test of good support at 992/991 and little chance of any further losses at this stage. However there is further good support at 988/987.

1008 remains tricky resistance on any bounce today but we have the momentum to push through here eventually, perhaps later in the week to the next target of 1014/16. Watch for profit taking here and the chance of a small pullback but if we break higher we should then close a gap at 1021.

Long term levels

1045      2012 High

1030      Oct High

1019      Sept High

1008      Last Week’s High

966       Last Week’s Low

959.75  Dec High

952.35100 Day Moving Average

The article was first published by DayTradeIdeas.com