Technically Speaking

Weekly Analysis: Energy Markets

By Darin Newsom , DTN Senior Analyst
Source: DTN ProphetX

Brent Crude Oil: The spot-month contract closed $0.68 lower at $34.06. Despite the lower close the secondary (intermediate-term) trend remains up. Initial resistance is pegged at $37.14, a price that marks the 23.6% retracement level of the previous downtrend from the high of $69.63 through the low of $27.10. Weekly stochastics remain bullish following a crossover below the oversold level of 20% the week of January 17.

Crude Oil: The spot-month contract closed $2.73 lower at $30.89. Despite the lower close the secondary (intermediate-term) trend remains up. Initial resistance is pegged at $34.78, a price that marks the 23.6% retracement level of the previous downtrend from the high of $62.58 through the low of $26.19. Weekly stochastics remain bullish following a crossover below the oversold level of 20% the week of January 17.

Distillates: The spot-month contract closed 0.39ct higher at $1.0590. The secondary (intermediate-term) trend remains up following a bullish crossover by weekly stochastics below the oversold level of 20% the week of January 17. The initial upside target is $1.4185, a price that marks the 23.6% retracement level of the previous downtrend from $3.2633 through the recent low of $0.8487.

Gasoline: The spot-month contract closed 11.04cts lower at $0.9927. A move to a new major (long-term) low of $0.9670 erased the previous week's bullish secondary (intermediate-term) signals. While the market still looks to be nearing the end of its secondary 3-Wave downtrend, it needs to reestablish a bullish pattern.

Ethanol: The spot-month contract closed 1.0ct higher at $1.436. The secondary (intermediate-term) trend remains up. However, daily stochastics are showing the minor (short-term) uptrend in an overbought situation as the spot-month contract moves toward resistance at $1.458. This could spark a round of short-term selling.

Natural Gas: The spot-month contract closed 23.5cts lower at $2.063. Despite the lower close the secondary (intermediate-term) trend remains up with initial resistance at the recent high of $2.495. The minor (short-term) downtrend looks to have bottomed out after testing support at $1.954 last week. This price marks the 67% retracement level of the previous minor uptrend from $1.684 through the $2.495 high.

Propane (Conway cash price): Conway propane closed 1.12cts higher at $0.3350. The secondary (intermediate-term) trend remains up with the market testing resistance $0.3249 and $0.3612. These prices mark the 33% and 50% retracement levels of the previous sell-off from $0.4700 through the low of $0.2525. Weekly stochastics remain bullish meaning the market could test the 67% retracement level up at $0.3976.

To track my thoughts on the markets throughout the day, follow me on Twitter: www.twitter.com\DarinNewsom

Comments

To comment, please Log In or Join our Community .