Technically Speaking

Weekly Analysis: Energy Markets

By Darin Newsom , DTN Senior Analyst
Source: DTN ProphetX

Brent Crude Oil: The spot-month contract closed $3.62 higher at $38.72. The secondary (intermediate-term) trend remains up as the spot-month contract moved above initial resistance at $37.14. This price marks the 23.6% retracement level of the previous downtrend from $69.63 through the low of $27.10. The close near the weekly high of $38.95 indicates momentum (reflected by stochastics) continues to grow more bullish. The next target is the 33% retracement level of $41.26, then the 50% mark of $48.36.

Crude Oil: The spot-month contract closed $3.14 higher at $35.92. The secondary (intermediate-term) trend remains up as the spot-month contract moved above initial resistance at $34.67. This price marks the 23.6% retracement level of the previous downtrend from $62.58 through the low of $26.05. The close near the weekly high of $36.34 indicates momentum (reflected by stochastics) continues to grow more bullish. The next target is the 33% retracement level of $38.31, then the 50% mark of $44.31.

Distillates: The spot-month contract closed 11.01cts higher at $1.1613. The secondary (intermediate-term) uptrend continues to strengthen as the spot-month contract moved to a new 4-week high of $1.1665. Initial resistance remains pegged at $1.4185, a price that marks the 23.6% retracement level of the previous downtrend from $3.2633 through the low of $0.8487.

Gasoline: The spot-month contract closed 31.55cts higher at $1.3321. The secondary (intermediate-term) trend is up, in line with the markets' seasonal tendency. However, the strength of last week's rally was due in large part to strong contango in the March-to-April futures spread as the March expired on February 29. The initial target is $1.4296, a price that marks the 23.6% retracement level of the previous downtrend from $3.1520 through the low of $0.8975.

Ethanol: The spot-month contract closed 0.1ct lower at $1.386. The secondary (intermediate-term) trend looks to be sideways with support at the low of $1.292 and resistance at the recent high of $1.441. Weekly stochastics remain neutral above the oversold level of 20%.

Natural Gas: The spot-month contract closed 12.5cts lower at $1.666. The market remains a mix of signals with its minor (short-term) trend possibly turning up following Friday's rally. However, last week's move to a new major (long-term) low of $1.611 indicates both the secondary (intermediate-term) and major trends are down.

Propane (Conway cash price): Conway propane closed 2.00cts higher at $0.4000. The secondary (intermediate-term) trend remains up as cash propane moved above resistance at $0.3976. This price marks the 67% retracement level of the previous downtrend from $0.4700 through the low of $0.2525. Weekly stochastics remain below the overbought level of 80% indicating the market has room to continue to move higher.

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 .