Technically Speaking

Weekly Analysis: Energy Markets

Brent Crude Oil: The spot-month contract closed $2.10 lower. The secondary (intermediate-term) trend remains down after the spot-month contract posted a new low of $88.11 last week. However, the spot-month was able to rally off this low to close at $90.21. Next major support is at the 50% retracement level of $82.30. Weekly stochastics remain in an oversold situation while monthly stochastics are bearish.

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Crude Oil: The spot-month contract closed $3.92 lower. Last week saw the spot-month contract post a new low of $83.59, following through on the previous week's bearish outside range and extending the secondary (intermediate-term) downtrend. The next major (long-term) level of support is $76.33. Monthly stochastics remain bearish.

Distillates: The spot-month contract closed 5.61cts lower. The secondary (intermediate-term) trend remains down after the spot-month contracts posted a new low of $2.5035 last week. While monthly stochastics have moved below the oversold level of 20%, next major (long-term) support is down at $2.2840.

Gasoline: The spot-month contract closed 12.10cts lower. The secondary (intermediate-term) trend is down, with the spot-month contract posting a new low of $2.2267 last week. The next level of major (long-term) support is at $2.1319, a price that marks the 50% retracement level of the uptrend from $0.7850 (December 2008 low) through the high of $3.4789 (April 2011 high).

Natural Gas: The spot-month contract closed 18.0cts lower. While technical indicators continue to show the secondary (intermediate-term) trend is up, action in the spot-month contract is pointing to a continued sideways trend. Resistance is at $4.167, a price that marks the 38.2% retracement level of the sell-off from $4.886 through the low of $3.723. Support remains at the previous low ($3.723). Major (long-term) stochastics remain bearish.

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