Technically Speaking

Monthly Analysis: Energy Markets

Brent Crude Oil: The spot-month contract closed at $57.55, down $12.60 on the monthly chart. The major (long-term) trend remains down as the spot-month contract tests support at $57.96. This price marks the 76.4% retracement level of the previous uptrend from $36.20 (low from December 2008) through $128.40 (high from March 2012). Monthly stochastics are in single digits, well below the oversold level of 20%, indicating the market could begin to stabilize.

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Crude Oil: The spot-month contract closed at $53.27, down $12.88 on the monthly chart. The major (long-term) trend remains down as the spot-month contract tests support at $51.91, a price that marks the 76.4% retracement level of the previous uptrend from $32.48 (December 2008) through $114.83 (May 2011). Monthly stochastics are in single digits, well below the oversold level of 20%.

Distillates: The spot-month contract closed at $1.8336, down 39.72cts on the monthly chart and below support at $1.8727. This price marks the 67% retracement level of the previous uptrend from $1.1252 (March 2009 low) through $3.37 (January 2014 high). Next support is pegged at the 76.4% retracement level of $1.6550. Monthly stochastics are in single digits, well below the oversold level of 20%.

Gasoline: The spot-month contract closed at $1.4721, down 43.18cts on the monthly chart. The major (long-term) trend remains down as the spot-month contract tests support at $1.4208. This price marks the 76.4% retracement level of the previous uptrend from $0.7850 (December 2008) through $3.4789 (April 2011). Monthly stochastics have moved below the oversold level of 20% with the market trading at its lowest levels since May 2009.

Natural Gas: The spot-month contract closed at $2.889, down $1.199 on the monthly chart. The major (long-term) trend is down as the spot-month contract moved below support at $2.985, a price that marks the 76.4% retracement level of the previous uptrend from $1.902 (April 2012 low) through $6.492 (February 2014 high). However, with monthly stochastics below the oversold level of 20% the market could begin to stabilize near this price support.

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