Technically Speaking

Weekly Analysis: Energy Markets

Brent Crude Oil: The spot-month contract closed $0.24 higher at $63.26. The secondary (intermediate-term) trend is sideways-to-down with support at $61.49. This price marks the 33% retracement level of the previous uptrend from $45.19 through the high of $69.22. Weekly stochastics remain bearish indicating the spot-month contract could move to a test of the 50% retracement level of $57.41.

Crude Oil: The spot-month contract closed $0.02 higher at $59.63. The secondary (intermediate-term) trend remains sideways with the spot-month contract holding below resistance between $58.60 and $65.41. These prices mark the 23.6% and 33% retracement levels of the previous secondary downtrend from $112.24 through the low of $42.03. Support is at the recent low of $56.51. Stochastics continue to hold above the overbought level of 80% indicating a breakout of the sideways trend would likely be to the downside.

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Distillates: The spot-month contract closed 0.41ct lower at $1.8628. The secondary (intermediate-term) trend remains sideways with the spot-month contract holding below 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. Support is at the recent low of $1.8185. Weekly stochastics are neutral-to-bullish.

Gasoline: The spot-month contract closed 1.01cts lower at $2.0485. The secondary (intermediate-term) trend looks to be down. Weekly stochastics have recently established a bullish crossover above the overbought level of 80%, in conjunction with the spot-month contract falling back from its test of resistance at $2.1892. This price marks the 50% retracement level of the downtrend from $3.1520 through the low of $1.2265. Initial support is pegged at $1.8664, the 33% retracement level of the previous uptrend from the $1.2265 low through the recent high of $2.1858.

Ethanol: The spot-month contract closed 10.40cts higher at $1.5790. The secondary (intermediate-term) uptrend strengthened again last week with the spot-month contract posting a solid rally off its test of support at $1.4309. This price marks the 67% retracement level of the initial rally from $1.2920 through the high of $1.7090. Given the continued inverse in the market's forward curve, the upside price target remains between $1.7785 and $1.9410.

Natural Gas: The spot-month contract closed 4.3cts lower at $2.773. The secondary (intermediate-term) trend remains sideways. Resistance is the recent high of $3.115 while initial support is at the 4-week low of $2.556. The most recent signal by weekly stochastics is a bullish crossover below the oversold level of 20% indicating the market could continue to see buying interest.

Propane (Conway cash price): Conway propane closed 5.01cts higher at $0.3388. The secondary (intermediate-term) trend is sideways-to-up with initial resistance at the 4-week high of $0.4025. Support is at the low of $0.2675. Weekly stochastics are neutral-to-bullish indicating the market could continue to see increased buying interest.

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