Technically Speaking

Energy Markets: Weekly Analysis

Source; DTN ProphetX

Brent Crude Oil: The spot-month contract closed $3.71 lower. The secondary (intermediate-term) remains down. The spot-month contract moved below the market's previous low of $96.75 (week of April 15, 2013) on continued pressure from commercial traders. The contango in the nearby futures spread strengthened to 85 cents on Friday's close. Weekly stochastics remain in single digits indicating a sharply oversold situation. Major (long-term) support is between $97.70 and $93.18 on the market's monthly chart.

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Crude Oil: The spot-month contract closed $1.02 lower. The secondary (intermediate-term) trend is down after the spot-month contract moved below, and closed below, its previous low of $92.50. However, losses were trimmed by support from the commercial side of the market, as indicated by the strengthening backwardation in the nearby futures spread. Major (long-term) support remains at $89.88 (last week's low was $90.43).

Distillates: The spot-month contract closed 7.87cts lower. The secondary (intermediate-term) trend remains down. The spot-month contract moved to a new low of $2.7213 last week, with major (long-term) support pegged near $2.6420.

Gasoline: The spot-month contract closed 6.46cts lower. The secondary (intermediate-term) trend remains down. The spot-month contract tested its previous low of $2.4945 (week of November 4, 2013), hitting $2.4968 last week. Major (long-term) support is near $2.45.

Natural Gas: The spot-month contract closed 6.4cts higher. The secondary (intermediate-term) trend remains up despite the lack of strong bullish enthusiasm in the market. Weekly stochastics remain below the oversold level of 20% after posting a bullish crossover the week of August 25. Secondary support remains at the recent low of $3.723 while major (long-term) support is between $3.656 and $3.431.

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