Technically Speaking

Energy Markets: Weekly Analysis

Source: DTN ProphetX

Brent Crude Oil: The spot-month contract closed $1.39 lower. The spot-month contract posted a new low of $95.60 last week, extending the secondary (intermediate-term) downtrend. However, it was able to rally off this new to close at $97.00. Weekly stochastics are still well below the oversold level of 20%, indicating the market remains in an oversold situation.

Crude Oil: The spot-month contract closed $1.13 higher. The secondary (intermediate-term) trend has turned sideways, with support at the recent low of $90.43. Initial resistance is at the 4-week high of $96.00, just short of retracement resistance at $96.19. This price marks the 33% retracement level of the previous downtrend from $107.73 through the recent low. Weekly stochastics established a bullish crossover below the 20% level last week, indicating the spot-month contract could work toward resistance in the coming weeks.

Distillates: The spot-month contract closed 1.61cts lower. The secondary (intermediate-term) trend remains down. However, after posting a new low of $2.6550 last week the spot-month contract may be in the process of establishing a 2-week bullish reversal. To do so, the spot-month contract needs to rally above the previous week's high of $2.7652. Keep in mind that the October contract expires Tuesday, and the November holds a slight contango over the expiring October. Weekly stochastics remain well below the oversold level of 20%, in position for a possible bullish crossover.

Gasoline: The spot-month contract closed 5.05cts higher. The secondary (intermediate-term) trend remains up. The spot-month contract posted a solid rally last week, testing initial resistance at $2.7460 before falling back Friday. This price marks the 38.2% retracement level of the previous downtrend from $3.1520 through the low of $2.4950. Weekly stochastics remain bullish, so look for another test of overhead resistance in the coming weeks.

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