Technically Speaking

Weekly Analysis: Energy Markets

Source: DTN ProphetX

Brent Crude Oil: The spot-month contract closed $0.12 higher at $45.89. The secondary (intermediate-term) trend remains down after the spot-month contract posted a new 4-week low of $45.09. Weekly stochastics remain bearish above the oversold level of 20%. Support is at $44.28 and $39.98, prices that mark the 33% and 50% levels of the previous uptrend from $27.10 through the high of $52.86.

Crude Oil: The spot-month contract closed $1.45 higher at $44.48. Despite the higher close the secondary (intermediate-term) trend remains down. The spot-month contract posted a new 4-week low of $42.55. With weekly stochastics bearish the market is in position to test retracement support between $41.88 and $38.86. These prices mark the 38.2% and 50% retracement levels of the previous uptrend from $26.05 through the high of $51.67.

Distillates: The spot-month contract closed unchanged at $1.4073. The secondary (intermediate-term) trend remains down. However, the spot-month contract continues to consolidate near support at $1.4111, a price that marks the 23.6% retracement level of the previous uptrend from $0.8487 through the high of $1.5848. Next support is at the 38.2% retracement level of $1.3026.

Gasoline: The spot-month contract closed 8.47cts lower at $1.3769. The secondary (intermediate-term) trend is sideways. Support is at the 4-week low of $1.2668 and resistance the 4-week high of $1.4788. Weekly stochastics remain neutral below 40%.

Ethanol: The spot-month contract closed 3.8cts higher at $1.546. The secondary (intermediate-term) trend is up with the spot-month contract posting a bullish outside range last week. Resistance is between $1.550 and $1.594, prices that mark the 50% and 61.8% retracement levels of the previous downtrend from $1.739 through the low of $1.360.

Natural Gas: The spot-month contract closed 3.5cts lower at $2.955. The market extended its rally to a new 4-week high of $3.021. However, weekly stochastics continue to hold near the overbought level, possibly liming new buying interest. If the market continues to rally, the next upside target is $3.476, a price that marks the 38.2% retracement level of the previous downtrend from $6.493 through the low of $1.611.

Propane (Conway cash price): Conway propane closed 3.37cts higher at $0.4800. The secondary (intermediate-term) uptrend continues to strengthen. Cash propane tested resistance at $0.4941, a price that marks the 76.4% retracement level of the previous downtrend from $0.5425 through the low of $0.3375, with its new high of $0.4938.

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