Technically Speaking

Weekly Analysis: Energy Markets

Source: DTN ProphetX

Brent Crude Oil: The spot-month contract closed $1.18 higher at $48.01. The secondary (intermediate-term) trend is sideways-to-down with weekly initial support is at the 4-week low of $45.32 while resistance is at the 4-week high of $51.22. Weekly stochastics remain bearish meaning the more likely next move would be a break of support.

Crude Oil: The spot-month contract closed $1.44 higher at $45.88. The secondary (intermediate-term) trend is sideways-to-down. Though weekly stochastics turned neutral short-term, the last signal was a bearish crossover. Initial resistance is at the 4-week high of $48.75 with support at the 4-week low of $43.00.

Distillates: The spot-month contract closed 2.08cts higher at $1.4304. The secondary (intermediate-term) trend remains down. Weekly stochastics are bearish, below 60%, meaning the market has room to fall back to test support between $1.3036 and $1.2168. These prices mark the 38.2% and 50% retracement levels of the previous uptrend from $0.8487 through the high of $1.5848. The recent low was $1.2466 (week of August 1).

Gasoline: The spot-month contract closed 5.95cts higher at $1.3611. The secondary (intermediate-term) trend remains down with initial support at $1.2820. This price marks the 50% retracement level of the previous uptrend from $0.8975 (week of February 8) through the high of $1.6664 (week of May 23). The 67% retracement level is down at $1.1535.

Ethanol: The spot-month contract closed 1.3cts lower at $1.487. Despite the lower close the secondary (intermediate-term) trend is up. The spot-month contract continues to test resistance at $1.505, a price that marks the 38.2% retracement level of the previous downtrend from $1.739 through the low of $1.360 (week of August 1). Next resistance is at the 50% retracement level of $1.550.

Natural Gas: The spot-month contract closed 0.5ts higher at $2.797. The secondary (intermediate-term) trend remains down after weekly stochastics established a bearish crossover above the overbought level of 80% the week of July 11. Initial support remains at $2.536, a price that marks the 33% retracement level of the previous uptrend from $1.811 through the high of $2.998. The 50% retracement level is down at $2.305.

Propane (Conway cash price): Conway propane closed 3.00cts higher at $0.4275. The secondary (intermediate-term) uptrend continues to strengthen. Cash propane tested resistance at $0.4400 last week, a price that marks the 50% retracement level of the previous downtrend from $0.5425 through the low of $0.3375. The 61.8% retracement level is up at $0.4642.

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