Technically Speaking

Weekly Analysis: Energy Markets

Brent Crude Oil: The spot-month contract closed $5.58 higher at $63.45. The secondary (intermediate-term) trend is up with the spot-month contract trading above initial resistance at $62.22. This price marks the 23.6% retracement level of the previous secondary downtrend from $117.34 through the low of $45.19. Weekly stochastics remain bullish meaning the market could ultimately test the 38.2% retracement level of $72.75.

Crude Oil: The spot-month contract closed $4.10 higher at $55.74. The secondary (intermediate-term) trend has turned up with the move by the spot-month contract above resistance at $54.24. Weekly stochastics are bullish, indicating the spot-month contract could soon test resistance at $58.60, the 23.6% retracement level of the previous downtrend from $112.24 through the low of $42.03. The 38.2% retracement level is up at $68.85.

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Distillates: The spot-month contract closed 11.63cts higher at $1.8824. Bullish weekly stochastics indicate the secondary (intermediate-term) trend has turned up again. Initial resistance is at $1.9841, a price that marks the 23.6% retracement level of the previous downtrend from $3.2633 through the low of $1.5890. The 38.2% retracement level is up at $2.2286.

Gasoline: The spot-month contract closed 12.26cts higher at $1.9299. The spot-month contract posted a bullish breakout of its pennant pattern, resulting in an immediate test of resistance at $1.6920. This price marks the 38.2% retracement level of the previous downtrend from $3.1520 through the low of $1.2265. While the measurement target (of the pennant pattern) projects to near the 61.8% retracement level of $2.4165, stochastics near the overbought level of 80% could lead to the establishment of a double-top near the 38.2% retracement level.

Ethanol: The spot-month contract closed 4.8cts higher at $1.6160. The secondary (intermediate-term) remains up. Resistance is at $1.6637, a price that marks the 38.2% retracement level of the previous sell-off from $2.2650 through the low of $1.2920. The 50% retracement level is up $1.7785. Weekly stochastics remain bullish, below the overbought level of 80%.

Natural Gas: The spot-month contract closed 12.3cts higher at $2.634. After posting a new low of $2.74 the spot-month contract was able to rally to a higher close. Weekly stochastics remain neutral-to-bullish, below the oversold level of 20%.

Propane (Conway cash price): Conway propane closed 2.50cts higher at $0.5025. The secondary (intermediate-term) trend remains up. After holding support at $0.4466, a price that marks the 67% retracement level of its initial rally from $0.3775 through the high of $0.5850, cash propane could target its recent high of $0.5850 Weekly stochastics are bullish with the last signal a bullish crossover below the oversold level of 20%.

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