New York Harbor Gasoline Futures (NYM.RB) fell by 4.9% in Friday's trading session following a 'big' rally of 4.4% on Thursday. Gasoline futures experienced a 'trend day down' pattern on Friday and the Wilder's Relative Strength Index is more than 30. History has proven this to be a very bearish sign.
Q: What happens to New York Harbor Gasoline Futures when the Wilder's Relative Strength Index is more than 30?
A: According to the 12 previous occurrences of this event, EventEdge indicates that NYM.RB has shown a strong bearish edge that peaks three trading days after the event. Thus, the projected date for the peak of the bearish edge relative to the current event date (Thursday, Nov. 6, 2008) is Tuesday, Nov.11, 2008. NYM.RB declines in 83% of the cases (10 of 12) by an average of 4.0% relative to the close on the event date. The average of the two rallies is 1.1%. The overall return of the 12 cases is -3.1%, which, based on the close of NYM.RB on the event date ($133.6), provides a target price of $129.46.
For more Market History go to www.markethistory.com
Robert Kolton is an intern analyst at MarketHistory.com.
