Technically Speaking

Brent Crude Oil: The spot-month contract closed $4.69 lower. The spot-month contract posted a new low of $92.31 last week, extending the secondary (intermediate-term) downtrend. This is below major (long-term) support at $93.18, a price that marks the 38.2% retracement level of the previous uptrend from $36.20 through the high of $128.40. Next major support is at the 50% retracement level of $82.30.

Crude Oil: The spot-month contract closed $3.80 lower. Last week saw the spot-month contract establish a bearish outside week, indicating the market has reestablished its secondary (intermediate-term) downtrend. A new low of $88.18 was posted before closing at $89.74. Major (long-term) support is at $89.88, a price that marks the 50% retracement level of the range from $147.27 (July 2008 high) to $32.48 (December 2008 low).

Distillates: The spot-month contract closed 8.42cts lower. The secondary (intermediate-term) trend remains down. After rallying early in the week, the spot-month contract moved to a new low of $2.5945 before closing at $2.6163. Major (long-term) support is at $2.6418, a price that marks the 50% level of the trading range from $4.1586 (July 2008 high) to $1.1252 (March 2009 low).

Gasoline: The spot-month contract closed 28.34cts lower. The secondary (intermediate-term) trend is down. The spot-month contract posted a new low of $2.3505 before closing at $2.3785. Major (long-term) support was at $2.4498, a price that marks the 38.2% retracement level of the uptrend from $0.7850 (December 2008 low) through the high of $3.4789 (April 2011 high). The 50% retracement level is down at $2.1319.

Natural Gas: The spot-month contract closed 5.5cts higher. The secondary (intermediate-term) trend is up after the spot-month contract set a new four-week high of $4.184, also taking out the previous peak of $4.101. Weekly stochastics established a bullish crossover below the oversold level of 20% the week of September 22. Minor resistance is at $4.167, then $4.305. These prices mark the 38.2% and 50% retracement levels of the sell-off from $4.886 through the low of $3.723.

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