Technically Speaking

Weekly Analysis: Energy Markets

By Darin Newsom , DTN Senior Analyst

Brent Crude Oil: The spot-month contract closed $0.75 lower at $40.45. Despite the lower close the secondary (intermediate-term) trend remains up. However, the spot-month contract has run into resistance between $41.26 and $43.35. These prices mark the 33% and 38.2% retracement levels of the previous downtrend from $69.63 through the low of $27.10. The 50% retracement level is up at $48.36.

Crude Oil: The spot-month contract closed $0.02 higher at $39.46. The secondary (intermediate-term) trend remains up. However, stochastics are nearing the overbought level of 80% as the spot-month contract tests resistance near $40.00, the 38.2% retracement level of the previous downtrend from $62.58 through the low of $26.05. This could lead to a sell-off in the market in the coming weeks.

Distillates: The spot-month contract closed 4.12cts lower at $1.1979. Though the secondary (intermediate-term) remains up with, weekly stochastics are nearing the overbought level of 80%. Resistance is at $1.4185, the 23.6% retracement level of the previous downtrend from $3.2633 through the low of $0.8487.

Gasoline: The spot-month contract closed 3.85cts higher at $1.4659. The spot-month contract has moved beyond resistance near $1.4300, pulling weekly stochastics above the overbought 80% level. This could to a secondary (intermediate-term) change in trend from up to down.

Ethanol: The spot-month contract closed unchanged at $1.425. The secondary (intermediate-term) trend remains sideways-to-up. Weekly stochastics remain bullish, well below the overbought level of 80%.

Natural Gas: The spot-month contract closed 10.1cts lower at $1.806. Given the continued minor (short-term) downtrend the market could continue to come under pressure on its weekly (intermediate-term) chart as well. Minor support is between $1.784 and $1.743.

Propane (Conway cash price): Conway propane closed 1.00ct lower at $0.4100. As expected, the secondary (intermediate-term) trend turned down. Last week's lower close led to a bearish crossover by weekly stochastics above the overbought level of 80%.

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

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