Gasoline futures could reach $2.20 this summer if the July-delivery contract clears $1.90 next week, according to technical analysis by Infinitytrading.com. The July contract, which becomes the front-month contract June 1, is poised to close above $1.902 a gallon next week, which represents the upper Bollinger band, said Fain Shaffer, president of Infinitytrading.com, a commodities brokerage in Medford, Oregon. The next objective is $2.0414, Shaffer said. Once above $2.0414, the next resistance level would be $2.1981 a gallon, the 200-period moving average on a monthly chart and approximately a 50 percent retracement of the drop from the record high to the record low. “I would be surprised for a market to rally all the way up from below 80 cents to almost $2 without completing the 50 percent retracement,” Shaffer said. “The tough part is done.” July-delivery gasoline rose 1.91 cents to $1.8741 a gallon yesterday on the New York Mercantile Exchange. The contract hasn’t closed above $2 since Oct. 14. “That’s the high we’re looking for this summer, $2.20 by August,” Shaffer said. “A lot of guys would look to sell it off at that point.” Consecutive closes under $1.90 would point to a decline toward $1.6967, the 20-day moving average on a daily chart. The next support level below that would be $1.4902. “As long as we have weekly closes at or above the 20-day moving average, it’s going to keep the uptrend intact,” Shaffer said.

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