Technically Speaking

Weekly Analysis: Energy Markets

Brent Crude Oil: The spot-month contract closed $1.05 higher at $44.66. The secondary (intermediate-term) trend is sideways-to-down with support at the major (long-term) low of $42.23. Weekly stochastics remain neutral-to-bearish above the oversold level of 20%.

Crude Oil: The spot-month contract closed $0.35 lower at $40.39. The secondary (intermediate-term) trend is sideways-to-down as the spot-month contract moved to a new 4-week low of $38.99. Support is at the major (long-term) low of $37.75 from August 2015. Weekly stochastics are neutral above the oversold level of 20%, with the last signal a bullish crossover below the 20% mark the week of August 24, in conjunction with a bullish reversal by the spot-month futures contract.

Distillates: The spot-month contract closed 1.00ct lower at $1.3713. The secondary (intermediate-term) trend is down after the spot-month contract moved through support at the major (long-term) low of $1.3745. Weekly stochastics are bearish below the oversold level of 20%.

Gasoline: The spot-month contract closed 5.14cts higher at $1.2903. After moving to a new major (long-term) low of $1.2024 the spot-month contract was able to rally to a higher close. Given that weekly stochastics remain bullish, indicating increased bullish momentum, the market could see a minor (short-term) uptrend.

Ethanol: The spot-month contract closed 4.9cts higher at $1.501. The secondary (intermediate-term) trend is sideways with initial resistance at $1.522, then $1.664. These prices mark the 23.6% and 38.2% retracement levels respectively of the previous downtrend from $2.265 through the low of $1.292. Support remains at $1.431, the 67% retracement level of the rally from the $1.292 low through the high of $1.709.

Natural Gas: The spot-month contract closed 21.6cts lower at $2.145. The spot-month contract posted a bearish outside price range indicating the market has moved back into a sideways trend. Support is at the major (long-term) low $1.948 while resistance is at the new 4-week high of $2.46. Weekly stochastics are neutral above the oversold level of 20%.

Propane (Conway cash price): Conway propane closed 0.5ct higher at $0.3725. The secondary (intermediate-term) trend remains sideways with the cash price stabilizing near support at $0.3688. This price marks the 50% level of the previous rally from $0.2675 through the $0.47000 high. Weekly stochastics are neutral, with the recent bearish crossover occurring below the overbought level of 80% meaning the market could possibly see a test of its previous high.

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