Technically Speaking

Weekly Analysis: Energy Markets

Brent Crude Oil: The spot-month contract closed $0.47 lower at $61.38. The spot-month contract posted a new low of $58.50 last week, a test of major (long-term) support at $57.96, indicating the secondary (intermediate-term) trend remains down. However, the spot-month contract also posted a solid rally off its low hinting at a possible spike reversal. Both weekly and monthly stochastics remain well below the oversold level of 20%.

Crude Oil: The spot-month contract closed $1.29 lower at $56.52. Similar to the Brent market, the spot-month WTI contract posted a new low of $53.60, a test of major (long-term) support pegged at $51.91, before rallying to close out the week. Both weekly and monthly stochastics remain well below the oversold level of 20%, indicating the market could establish a bullish crossover in the weeks ahead.

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Distillates: The spot-month contract closed 5.38cts lower at $1.9622. The secondary (intermediate-term) trend remains down despite weekly stochastics continuing to show the market is sharply oversold. The spot-month contract posted a new low of $1.9264, testing major (long-term) support between $1.9827 and $1.8727. These prices mark the 61.8% and 67% retracement levels of the previous major uptrend from $1.1252 through the high of $3.3700.

Gasoline: The spot-month contract closed 3.78cts lower at $1.5595. The secondary (intermediate-term) remains down despite weekly stochastics continuing to show the market is in a sharply oversold situation. The spot-month contract posted a new low of $1.5138, moving toward a test of next major (long-term) support at $1.4208. This price marks the 76.4% retracement level of the previous major uptrend from $0.7850 through the high of $3.4789.

Natural Gas: The spot-month contract closed 0.331cts lower at $3.464, posting a bearish outside week in the process. Not only did the spot-month contract trade (and close) $3.585, it also settled below previous support at $3.541. While the weekly chart shows more pressure should be expected, the market is testing major (long-term) at $3.431. This price marks the 67% retracement level of the previous major uptrend from $1.902 through the high of $6.493.

Propane (Conway cash price): Conway propane closed 0.35ct higher at $0.5325. The cash market held the previous week's low of $0.5225 before posting a higher close. Weekly stochastics established a bullish crossover below the oversold level of 20%, a confirming signal to the one from the week of May 19, 2014. This would indicate the secondary (intermediate-term) trend could be set to turn up.

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