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Re: March Gasoline/ Holding its Breakout/Winseer *PIC*

Here is the type of chart I look at mostly. It's a Continuous chart that reflects the price action of the front month where most of the volume and open interest is. Note how different this chart is from the March contract. One has to realize when looking at a March/11 contract that the past data was a futures contract back month with contango or backwardation and very little open interest. I might be crazy but looking at a year or two or more of an actual contract doesn't make any sense to me for that reason. A continuous chart makes sense to me fwiw. See how back in early March price cleared the Jan high of 2.20 and then served as support until it broke back below in May. At the time one would have had a stop loss below 2.20 like any other trade as that saw support break down. Note how price then sold off and bounced back to 2.20 again in June and Aug which is now resistance again being the breakdown point. Price failed to clear 2.20 price resistance and fell back to major support of 1.80 which was the Dec/09 lows. Price then rallied to 2.20 again in Oct and failed but only dropped back a little finding support at a higher level on this sell off. Price then rallied and cleared 2.20 resistance and has zig zagged higher in a nice uptrend from Aug ever since all the way back to the May double top highs at 2.45. So this chart is saying price while breaking out to a higher rally high has reached major resistance being a double top at 2.45. Different perspective now with a continuous chart. Note besides the double top at 2.45 the very long term resistance level just a tad above at 2.50 that is the 2005, 2006 and 2007 highs. Notice as well this 2.50 area is the Fib 61.8% retracement point resistance of the July/08 to Dec/08 sell off. So if it was my trade I would dump it here and wait to see if price breaks out over 2.50. But there is one hell of a ton of resistance at this 2.50 price point. If it does price will likely rally strongly much like it did in 2008. (See dotted lines at price support and resistance levels.)
Lets all hope it doesn't breakout over 2.50.............

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Re: March Gasoline/ Holding its Breakout/Winseer *PIC*