Technically Speaking
Darin Newsom DTN Senior Analyst

Saturday 06/21/14

Energy Markets: Weekly Analysis

Brent Crude Oil: The spot-month contract closed $1.40 higher. The secondary (intermediate-term) trend remains up. The spot-month contract continues to hold above resistance at $112.56, the 67% retracement level of the previous downtrend from $117.34 to $102.98. With weekly stochastics approaching the overbought level of 80%, the market still has a chance to test its previous high.

Crude Oil: The spot-month contract closed $0.35 higher. The secondary (intermediate-term) trend on the weekly chart remains up. However, weekly stochastics have moved back above the overbought level of 80% setting the stage for a possible turn down in the near future. The spot-month contract continues to hold above resistance at $105.25, the 67% retracement level of the previous downtrend from $112.24 through the low of $91.24. Major resistance on the long-term monthly chart remains at $109.12.

Distillates: The spot-month contract closed 6.36cts higher. The secondary (intermediate-term) trend has turned up. The spot-month contract has cleared resistance at the previous high of 3.0216, setting the stage for an extended rally. Weekly stochastics remain neutral to bullish. Major (long-term) resistance on the monthly chart is pegged near $3.1485.

Gasoline: The spot-month contract closed 7.00cts higher. The secondary (intermediate-term) trend is sideways to up. The spot-month contract has moved above its previous high of $3.1128, setting the stage for a possible run at its long-term high of $3.2672. However, weekly stochastics are approaching the overbought level of 80%, a factor that could limit buying enthusiasm in the weeks to come.

Natural Gas: The spot-month contract closed 20.8cts lower. The secondary (intermediate-term) trend remains sideways. The spot-month contract fell back from a test of resistance at the previous high of $4.852. Support remains between $4.414 and $4.249, prices that mark the 61.8% and 67% retracement levels of the uptrend from $3.129 through the high of $6.493. Weekly stochastics are neutral.

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Posted at 6:25AM CDT 06/21/14 by Darin Newsom
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