Coming into the week WTI, Brent, and RBOB were all pressing their upper Bollinger bands. ULSD and Gasoil ended the week trading outside their upper Bollinger bands. So not surprised by Monday’s price action. While the pull back was enough to relieve the minor overextended condition in crude and RBOB, that was not the case for ULSD and Gasoil. So still would not rule out some additional weakness into mid-week. At this time, I am inclined to treat any such price action as corrective in nature. However, it will not take much to shift our opinion. Should ULSD and Gasoil show signs that a rising wedge may have run its course the case for more serious peaking action will quickly gain traction.
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