Technically Speaking

Weekly Analysis: Energy Markets

Brent Crude Oil: The spot-month contract closed $1.18 higher at $66.46. The secondary (intermediate-term) trend is up, with next resistance pegged at $72.75. This price marks the 38.2% retracement level of the previous downtrend from $117.34 through the low of $45.19. However, weekly stochastics are already above the 80% level indicating the market is overbought.

Crude Oil: The spot-month contract closed $2.00 higher at $59.15. The secondary (intermediate-term) trend is up with the spot-month contract priced above initial resistance at $58.60. This price marks the 23.6% retracement level of the previous downtrend from $112.24 through the low of $42.03. While the next target remains the 38.2% retracement level at $68.85, weekly stochastics have climbed above the overbought level of 80%.

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Distillates: The spot-month contract closed 5.39cts higher at $1.9822. The secondary (intermediate-term) trend is up with the spot-month contract testing initial resistance at $1.9841. This price marks the 23.6% retracement level of the previous downtrend from $3.2633 through the low of $1.5890. Weekly stochastics remain bullish indicating an extension of the uptrend to the 38.2% retracement level of 2.2286 is likely.

Gasoline: The spot-month contract closed 3.74cts higher at $2.0453. The secondary (intermediate-term) trend remains up. The recent breakout of the bullish pennant projects a high near $2.36, a test of major resistance at $2.3527 on the long-term monthly chart. This price marks the 50% retracement level of the previous major downtrend from $3.4789 through the low of $1.2265. However, weekly stochastics are already above the overbought level of 80%, a factor that could possibly limit new buying interest.

Ethanol: The spot-month contract closed 0.6ct higher at $1.6070. The secondary (intermediate-term) remains up after the spot-month contract posted a bullish outside week. However, the market has been unable to break through resistance 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, keeping in play a potential double-top formation with its previous peak of $1.6550. Weekly stochastics remain bullish but are approaching the overbought level of 80%.

Natural Gas: The spot-month contract closed 24.5cts higher at $2.776. The secondary (intermediate-term) trend turned up as the spot-month contract posted a bullish key reversal last week. Initial resistance is pegged at $3.39, a price that marks the 23.6% retracement level of the previous downtrend from $6.493 through last week's low of $2.443. A test of this resistance would also be a test of the lower end of a bearish price gap ($3.351) left the week of December 22, 2014.

Propane (Conway cash price): Conway propane closed 0.75ct lower at $0.4725. The secondary (intermediate-term) trend remains sideways. Support is at $0.4466, a price that marks the 67% retracement level of the initial rally from $0.3775 through the high of $0.5850.

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