Gasoline future contract remains firmly in red for the seventh straight day and probes below support at $1.6274 (Fibo 76.4% of 1.5364/1.9221 upleg).
Bears eye strong support at $1.6046, provided by the top of thick daily cloud (cloud is spanned between $1.6046/1.5394) and reinforced by daily MA’s (55SMA at 1.6033, 200SMA at $1.5874 and 100SMA at $1.5743) where near-term bears from $1.9221 (30 Aug peak) would face strong headwinds.
Oversold slow stochastic on daily chart also supports scenario.
Overall bulls have been dented by recent fall but will remain in play if abovementioned supports contain recent bearish acceleration.
Otherwise, further retracement of larger 1.3953/1.9221 (21 June / 30 Aug rally) could be expected on break lower.
Res: 1.6570, 1.6725, 1.6935, 1.7026
Sup: 1.6200, 1.6046, 1.5874, 1.5743
