Gasoline weekly uptrend opportunity based On 1.00 Lot Calculation:
- GASOLINE PRICE ACTION: Gasoline has fallen more than 4.00% to test its lowest rate in three weeks (2.3175). Gasoline, and other oil products, fell this week on reports that Iran will be restarting the 2015 Nuclear Deal negotiations with the EU in late November.
- EVENT: OPEC+ MEETING (THURSDAY, NOVEMBER 4): Saudi Arabia, on the other hand, said that OPEC+ should take a cautious approach when it comes to raising production, meaning that they will not rush to abruptly increase oil production due to higher oil prices. Russia expects OPEC+ to also move forward according to previous plan and increase production only by 400K barrels per day. The outcome could be positive for oil (oil derivatives) prices as supply will remain limited amid rising demand into the year end.
- ONGOING: Energy Crisis in Europe as energy prices continued to rise and Gasoline and Oil prices continued to trade close to their 7-year highs. There are reports of an energy crisis in China, too, due to lack of coal and natural gas to produce electricity power. India is also expected to face electricity power outages as their coal inventories run low too: Europe is facing an extreme squeeze for energy supplies, with gas and power prices breaking records day after day. The continent is running out of time to refill storage facilities before the start of the winter as flows from top suppliers Russia and Norway remain limited. The current crisis could add 500K to 650K barrels per day of demand as industries switch from natural gas to oil (and oil product) use.
- US Gasoline Inventories Continue to Fall: Energy Information Administration weekly report on gasoline (Week: October 18-October 22). The Energy Information Administration reported a decrease of 1.994 million barrels of gasoline (exp.: -1.862m). Gasoline inventories are expected to continue to fall week over week as demand for the product remains high in the U.S. due to lowered pandemic restrictions, which allow for more traffic on the streets and motorways. Meanwhile, Cushing oil inventory (delivery point for US crude futures) fell by 3.9 million barrels to 27.332 million barrels (the lowest since 2018).
- VACCINATION PROCESS EXPANDS GLOBALLY WITH 6.94 BILLION DOSES BEING ADMINISTERED SO FAR AT AN AVERAGE DAILY RATE OF 28 MILLION DOSES. The expanding vaccination process keeps chances high that more and more countries will reopen into the summer, which could increase travelling and therefore fuel consumption could rise. This tends to support oil and oil derivatives prices.
Gasoline, October 28, 2021
Current Price: 2.3350
|
GASOLINE |
Weekly |
|
Trend direction |
|
|
2.5600 |
|
|
2.5000 |
|
|
2.4300 |
|
|
2.2500 |
|
|
2.2000 |
|
|
2.1600 |
Example of calculation base on weekly trend direction for 1.00 Lot*
|
GASOLINE |
||||||
|
Pivot Points |
||||||
|
Profit or loss in $ |
22,500.00 |
16,500.00 |
9,500.00 |
-8,500.00 |
-13,500.00 |
-17,500.00 |
|
Profit or loss in €** |
19,417.48 |
14,239.48 |
8,198.49 |
-7,335.49 |
-11,650.49 |
-15,102.48 |
|
Profit or loss in £** |
16,395.11 |
12,023.08 |
6,922.38 |
-6,193.71 |
-9,837.07 |
-12,751.76 |
|
Profit or loss in C$** |
27,948.15 |
20,495.31 |
11,800.33 |
-10,558.19 |
-16,768.89 |
-21,737.45 |
* 1.00 lot is equivalent of 100000 units
** Calculations for exchange rate used as of 8:50 a.m. (GMT) 28/10/2021
Fortrade recommends the use of Stop-Loss and Take-Profit, please speak to your Client Manager regarding their use.
*** You may wish to consider closing your position in profit, even if it is lower than suggested one
**** Trailing stop technique can protect the profit – Ask your Client Manager for more details