Gasoline contract for September delivery remains in uninterrupted steep ascend and hits new 25-month highs on probe above $1.8700 barrier. The contract extends rally on Wednesday, following gains of over 5% the previous day, boosted by fears of fuel shortage in the markets after production was disrupted by closure of several refineries, caused by hurricane Harvey which hit Texas.
Gasoline currently rides on the third wave of five-wave cycle from $1.3953 (2017 low) which extended above FE 100% and could travel to $1.8929 (FE 123.6%), with psychological $2.000 barrier coming in focus.
No signs of correction so far, despite strongly overbought daily studies, but some corrective action should be anticipated in the near future.
Res: 1.8800; 1.8929; 1.9000; 1.9350
Sup: 1.8249; 1.8171; 1.8066; 1.8000
