Everyone seems to be anticipating pure fuel costs to sky rocket this coming winter however what does the value knowledge inform us? Can we use charts to forecast the value of pure fuel for early 2023?
Analyzing value motion on a number of time frames permits us to reach at a $3.60 value goal for pure fuel. That is primarily based on cycles we’ve got noticed going again over 2 many years. The value motion might change with a dovish FOMC assertion in the course of December 2022 however to date we’re headed for a giant decline. As with every commerce, there may be an invalidation level. If value closes December 2020 at or above $7 that may take this situation off the desk.
Chart beneath reveals previous declines after a parabolic rise. If we had been to fall 60% from peak to trough that may take value to $3.60 and that may be a gentle drawdown by historic requirements. That is dangerous information for ETFs like UNG.
Quarterly chart of Pure Fuel futures going again to early Nineties. Previous declines have been as sever as 80%/+
For additional evaluation consult with this detailed video: https://youtu.be/o3YVEyU9H_Y
