Technically Speaking

Weekly Analysis: Energy Markets

Brent Crude Oil: The spot-month contract closed $1.86 lower at $43.00. The secondary (intermediate-term) trend is sideways-to-down with the spot-month contract testing support at the major (long-term) low of $42.23. Weekly stochastics remain neutral-to-bearish near the oversold level of 20%.

Crude Oil: The spot-month contract closed $1.74 lower at $39.97. The secondary (intermediate-term) trend is sideways-to-down. Support is at the 4-week low of $38.99 then the major (long-term) low of $37.75 from August 2015. Weekly stochastics are neutral-to-bearish 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 $1.3424. The secondary (intermediate-term) trend is down after the spot-month contract posted a new major (long-term) low of $1.3033. Weekly stochastics remain bearish below the oversold level of 20%.

Gasoline: The spot-month contract closed 12.03cts lower at $1.2702. The secondary (intermediate-term) trend looks to have turned sideways again. Support is at the 4-week low of $1.2024 and initial resistance at the 4-week high of $1.4166.

Ethanol: The spot-month contract closed 3.8cts higher at $1.509. 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 2.6cts lower at $2.186. The secondary (intermediate-term) trend remains sideways. Support is at the major (long-term) low $1.948 while resistance is at the 4-week high of $2.46. Weekly stochastics are neutral above the oversold level of 20%.

Propane (Conway cash price): Conway propane closed 1.00ct lower at $0.3638. The secondary (intermediate-term) trend remains sideways-to-down. Next support is at $0.3349, a price that marks the 67% level of the previous rally from $0.2675 through the $0.47000 high. Weekly stochastics are neutral-to-bearish.

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