Technically Speaking

Weekly Analysis: Energy Markets

Source: DTN ProphetX

Brent Crude Oil: The spot-month contract closed $2.41 lower at $52.21. The secondary (intermediate-term) trend remains down with the spot-month contract testing support at $50.96. This price marks the 76.4% retracement level of the previous uptrend from $45.19 through the high of $69.22. Weekly stochastics have crossed below the oversold level of 20% indicating the market could begin to stabilize. If so, Wave 2 of the major (long-term) 5-wave uptrend could soon come to an end.

Crude Oil: The spot-month contract closed $1.02 lower at $47.12. The secondary (intermediate-term) trend remains down with the spot-month contract testing support at $46.88. This price marks the 76.4% retracement level of the previous uptrend from $42.03 through the high of $62.58. Weekly stochastics have moved below 20% indicating the market may be in the latter stages of Wave 2 of a major (long-term) 5-Wave uptrend.

Distillates: The spot-month contract closed 4.13cts lower at $1.5889. The secondary (intermediate-term) trend remains sideways-to-down with the spot-month contract testing support at its major (long-term) low of $1.5890. Weekly stochastics have moved below the oversold level of 20% indicating the market could begin to stabilize.

Gasoline: The spot-month contract closed 5.62cts lower at $1.7720. The secondary (intermediate-term) trend remains down with the spot-month contract moving toward support at $1.7062. This price marks the 50% retracement level of the previous uptrend from $1.2265 through $2.1858, continues to hold. Weekly stochastics remain bearish indicating the market should continue to see selling interest.

Ethanol: The spot-month contract closed 1.00cts higher at $1.5050. The secondary (intermediate-term) trend remains sideways after the spot-month contract rallied off its test of support at $1.4309 last week (a posted low of $1.4300). This price marks the 67% retracement level of the previous rally from $1.2920 through the high of $1.7090. Weekly stochastics are neutral-to-bearish. The major (long-term) trend remains up.

Natural Gas: The spot-month contract closed 6.0cts lower at $2.716. The secondary (intermediate-term) trend remains sideways. However, the spot-month contract is in position to test support at its 4-week low of $2.644 if pressure continues to build. Weekly stochastics are neutral.

Propane (Conway cash price): Conway propane closed 2.62cts lower at $0.3038. A move to a new 4-week low turned the secondary (intermediate-term) trend sideways-to-down. Weekly stochastics are now neutral-to-bearish indicating a test of major (long-term) support at the low of $0.2675 is possible.

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