Gas oil futures (ICE Futures Europe FP) rallied on every day of last week while trading at record highs. FP rallied 3.4% on Friday to close the session at 1192.5. FP also closed above its upper Bollinger band (20-day, 2 standard deviations) for the second day in a row on Friday. It seems, despite the recent surge, FP still has a full tank.
Q: How has IPE.FP performed in the past, omitting repeat occurrences within 10 trading days, when, while trading at a 52-week high, it closes above its upper Bollinger band for the second successive time on Friday?
A: According to the 12 previous occurrences of this event, EventEdge indicates that FP has shown a very strong bullish edge that peaks 19 trading days after the event. Thus, the projected date for the peak of the bullish edge relative to the current event date (Friday, May 9, 2008) is Friday, June 6, 2008.
IPE.FP rallies in 100% of the cases (12 of 12) by an average of 11.2% relative to the close on the event date. Which, based on the close on the event date (1192.5), provides a target price of 1326.06.
To view this idea in our EventEdge® analysis tool click here. Also take a look at other bullish postings on IPE.FP published on our site recently. (See links below.)
Ronish Patel is an analyst with MarketHistory.com.
Related Ideas:
Gas Oil Futures - Spring Spike - May 9, 2008
Gas Oil Futures - May Bullishness - May 1, 2008
