Gasoline Remains On Fire
This morning, the United States Gasoline Fund (NYSEARCA:UGA) is trading higher by 0.08 cents to $57.19 a share. The UGA is just $1.00 shy of last weeks 52 week high of $58.16 a share. Short term traders should watch for intra-day resistance around the $57.50 area. Should the UGA pullback intra-day, the $56.80 level will be short term support. The UGA remains very strong on the daily chart at this time.
Investors must remember that high gasoline prices are a direct tax on the consumer. It is important to note that consumer spending accounts for about 70.0 percent of the gross domestic product (GDP) in United States. The average price of gasoline at the pump in the U.S. this week is $3.81 a gallon. The average price of gasoline in California is around $4.25 a gallon.