by Chris Kimble
CLICK ON CHART TO ENLARGE
Without a doubt high gas prices has its negative impact on the consumer. The talking heads have been discussing how high gas prices could reach in the near future. Lets step back for a moment and look at Crude oil prices, traders positions and gas prices.
The upper left chart reflects that traders have established positions where Crude oil has been closer to a high than a low over the past few years. The upper right chart takes a different slant on traders positions in crude oil, yet the message is the same. The lower left chart reflects that a falling resistance line is coming into play in gasoline futures, that has stopped the rally in the past couple of years.
Bottom line, resistance is at hand in Crude oi & gas futures. If the oil markets can break above these resistance levels, it would send a concerning message to the consumer....at this time resistance is resistance.
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