Most traders in the commodity and energy markets watch technical levels very closely. Some say that prices follow technicals because traders watch the technical levels. Others (especially those who practice Elliott Wave Analysis) would say that when the herd mentality rules the market, certain types of movements can be anticipated, not because traders watch those levels, but because the underlying emotions of greed and fear tend to exert their influence on the markets.
Typically, when prices break below the immediately preceding low, we will hear from some market participants that they are now more bearish. However, using Elliott Wave Analysis, one can say with a reasonable degree of confidence that Gasoline will probably experience one more rally that will take it back to at least the 316 level, more likely to the 323 levels.
Should such a rally materialize as I am anticipating, these same traders who became bearish at the lows will turn bullish. Alas, that will be a trap for many because the completion of five waves in the larger rally that finished at 348 would require a much deeper correction, perhaps down to the 250 levels. So Elliott Wave Analysts would then call Gasoline down from near 323.