Gasoline was the top winner in early Monday’s trading. Contract for September delivery surged to the highest levels since July 2015 after opening with gap higher of 5.3% on Monday (1.6721 Fri close/1.7611 Mon open). Gasoline hit session high at 1.7783, before easing to 1.7232 in late Asian/early European trading. The price soared after markets started to digest the impact o hurricane Harvey on the US Gulf coast. This was the most powerful hurricane that hit the state of Texas in more than 50 years which caused a big damage, casualties and prompted the closure of several refineries. Gasoline ended Friday’s trading in red after wide-amplitude trading action showed strong hesitation at 1.6835 barrier (former high of 01 Aug) but closed positively for the second consecutive week. Firmly bullish daily studies are supportive for clear break above dented key med-term barrier at 1.7697 (12 Apr high) to signal resumption of broader recovery rally from 0.8975 (Feb 2016 low). Meanwhile, deeper correction before fresh rally could be anticipated. Thick hourly cloud (spanned between 1.6993 and 1.6583) is expected to contain extended dips.
Res: 1.7697, 1.7783, 1.8000, 1.8306
Sup: 1.7223, 1.7000, 1.6993, 1.6835
