Technically Speaking

Monthly Analysis: Energy Markets

Brent Crude Oil: The spot-month contract closed at $85.86, down $8.81 for the month. The major (long-term) trend remains down with support at $82.30. This price marks the 50% retracement level of the previous uptrend from $36.20 (low from December 2008) through $128.40 (high from March 2012). The 61.8% retracement level is down at $71.42. Monthly stochastics are nearing the oversold level of 20%.

Crude Oil: The spot-month contract closed at $80.54, down $10.62 for the month. The major (long-term) trend remains sideways to down with support pegged at $73.66. This price marks the 50% retracement level of the previous uptrend from $32.48 (December 2008) through $114.83 (May 2011). Monthly stochastics are nearing the oversold level of 20%.

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Distillates: The spot-month contract closed at $2.5145, down 13.27cts for the month. The major (long-term) trend remains sideways to down with support at $2.4878. This price marks the 38.2% retracement level of the previous uptrend from $1.1252 (March 2009) through $3.33 (April 2011). The 50% retracement level is down at $2.2276. Monthly stochastics are below the oversold level of 20% and could eventually establish a bullish crossover.

Gasoline: The spot-month contract closed at $2.1695, down 41.74cts for the month. The major (long-term) trend is down with support pegged at $2.1319. This price marks the 50% retracement level of the previous uptrend from $0.7850 (December 2008) through $3.4789 (April 2011).

Monthly stochastics are holding above the oversold level of 20%, meaning the market could test the 61.8% retracement level of $1.8141.

Natural Gas: The spot-month contract closed at $3.873, down 24.8cts for the month. The major (long-term) trend remains sideways as the spot-month contract holds above support at $3.656. This price marks the 61.8% retracement level of the previous uptrend from $1.902 through the high of $6.493. The last major signal established by monthly stochastics was a bullish crossover at the end of May 2012. The rally and subsequent interim peak did not create a bearish crossover above the overbought level of 80%.

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