The trade in August RBOB that just triggered
Murali Sarma of Trade Guidance, LLC - InsideFutures.com - Fri Jul 19, 7:43AM CDT

The International Energy Agency (IEA) is reducing its 2019 oil demand forecast due to a slowing global economy amid a U.S.-China trade spat, its executive director said on Thursday. The IEA is revising its 2019 global oil demand growth forecast to 1.1 million barrels per day (bpd) and may cut it again if the global economy and especially China shows further weakness. Last year, the IEA predicted that 2019 oil demand would grow by 1.5 million bpd but had cut the growth forecast to 1.2 million bpd in June this year. U.S. oil output was expected to grow by 1.8 million bpd in 2019, which would be slower than the 2.2 million bpd increase recorded in 2018, these volumes will come into a market where demand growth is coming down is what the IEA opinion is for this month.

That is the headline opinion from IEA this week which weighs on the oil fundamentals. Here at TradeGuidance, we like to call and trade what we can see and for this morning, we present a RBOB [Gasoline] trade idea which is a trade we are currently in and plays out as a measurement from this Monday's lows for August'19 RB @ 1.9161 to the low we made off the drop in Crude oil yesterday to 1.8207. That measurement gives us the following trade idea which we took advantage of and has a 1.7982 profit target on the Short setup which we have just begun trailing:

rb-ti-71919

Here is a view of the underlying chart and measurements

rb-c-71919

Note that while WTI Crude has rolled to the September'19 expiration, RB continues to trade the August'19 expiration and will roll at the end of the month.

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