Technically Speaking

Weekly Analysis: Energy Markets

Brent Crude Oil: The spot-month contract closed $1.09 higher at $56.41. The secondary (intermediate-term) trend remains up with the spot-month holding above technical support at $54.09. This price marks the 50% retracement level of the initial rally from $45.19 through the high of $63.00. Weekly stochastics remains bullish indicating a retest of resistance at $62.22 is possible.

Crude Oil: The spot-month contract closed $3.15 higher at $48.87. While the spot-month contract moved to a new 4-week high last week and weekly stochastics are bullish, the secondary (intermediate-term) trend remains sideways. Resistance remains at $54.24, the high from the week of February 2, 2015. Support is at the recent low of $42.03.

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Distillates: The spot-month contract closed 0.68cts lower at $1.7275. The secondary (intermediate-term) trend remains sideways with support at the previous low of $1.5890. Weekly stochastics are short-term bearish, though the last secondary signal was a bullish crossover below the oversold level of 20%.

Gasoline: The spot-month contract closed 0.02cts higher at $1.7980. The secondary (intermediate-term) trend remains up, with the spot-month contract holding above support at $1.6909. This price marks the 38.2% retracement level of the initial rally from $1.2265 through the high of $1.9779. Resistance remains between $2.0060 and $2.2469, the 38.2% and 50% retracement levels respectively of the previous secondary downtrend from $3.2672.

Ethanol: The spot-month contract closed 0.02cts higher at $1.4910. The secondary (intermediate-term) remains sideways as the spot-month contract consolidates between $1.5400 and $1.2920. Weekly stochastics are bullish, indicating the market is working toward a bullish breakout. If this occurs the target price would be $1.7880, adding the range of the sideways trend ($1.5400 - $1.2920 = $0.2980) to the breakout point ($1.5400).

Natural Gas: The spot-month contract closed 14.7cts lower at $2.639. The secondary (intermediate-term) trend remains sideways. Weekly stochastics are neutral below the oversold level of 20%. Last week's low of $2.578 could establish a double bottom in conjunction with the $2.567 low from the week of February 2. Resistance remains at the recent high of $3.039.

Propane (Conway cash price): Conway propane closed 2.62cts higher at $0.4850. The secondary (intermediate-term) trend remains up. Cash propane has held support at $0.4466, a price that marks the 67% retracement level of the rally from $0.3775 through the recent high of $0.5850.

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