Today we've chosen to take a look at the chart of unleaded gasoline because it is suggesting that we could see an increase in how much we will be paying to fill up our vehicles. As you can see from the chart below, the futures contract was able to find support near $1.45, but it has since rebounded and has moved beyond a short-term level of resistance. Notice how the $1.60 mark acted as resistance while the contract traded within a horizontal channel over the past couple of months. Now that the bulls have been able to push the price of the contract beyond the resistance of $1.60, we believe that a move higher is not out of the question.
We've also added the MACD indicator, which has recently made its move above the zero line. This bullish MACD signals to traders that the short-term moving average has moved above the long-term average and that the momentum could continue upward. Notice how a cross below zero could have been used to predict the increase in downward momentum back in early August.