Technically Speaking

Energy Markets: Weekly Analysis

Brent Crude Oil: The spot-month contract closed $2.37 lower. The secondary (intermediate-term) looks to be down again after the spot-month contract posted a new low of $100.17 last week. Weekly stochastics show the market to be sharply oversold, while the contango in the nearby futures spread continues to weaken. Major (long-term) support remains at $97.70, a price that marks the 33% retracement level of the previous uptrend from $36.20 (December 2008) through the high of $128.40 (March 2012).

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Crude Oil: The spot-month contract closed $2.67 higher. The secondary (intermediate-term) trend is sideways with the spot-month contract holding above its previous low of $92.50. Weekly stochastics remain below the oversold level of 20%. Major (long-term) support on the monthly chart is at $89.90, a price that marks the 50% retracement level of the range from the July 2008 high of $147.27 and the December 2008 low of $32.48.

Distillates: The spot-month contract closed 3.77cts lower. The secondary (intermediate-term) trend looks is sideways to down after the spot-month contract posted a new low of $2.7935 last week. However, weekly stochastics are below the oversold level of 20% indicating a possible bullish turn in the near future.

Gasoline: The spot-month contract closed for the week. The recent expiration of the September contract continues to cause havoc with the weekly chart. Still, weekly stochastics are below 20% indicating an oversold situation that could spark renewed buying interest.

Natural Gas: The spot-month contract closed 27.2cts lower. While technical indicators continue to show the secondary (intermediate-term) trend is up, last week's action saw the spot-month contract fall back to within striking distance of its previous low at $3.723. Next week's trade will be important as a new low would offset the recent move to a new four-week high.

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