Technically Speaking

Weekly Analysis: Energy Markets

Source: DTN ProphetX

Brent Crude Oil: The spot-month contract closed $3.27 higher at $41.94. The spot-month contract posted an outside range last week, extending the secondary (intermediate-term) uptrend. However, the contract is testing resistance between $41.26 and $43.35 as weekly stochastics hold above the overbought level of 80%. Next resistance is up at $48.36.

Crude Oil: The spot-month contract closed $2.93 higher at $36.79. The secondary (intermediate-term) trend remains up. However, the spot-month contract is testing resistance at $40.00, a price that marks the 38.2% retracement level of the previous downtrend from $62.58 through the major (long-term) low of $26.05, while weekly stochastics have moved above the overbought level of 80%.

Distillates: The spot-month contract closed 6.87cts higher at $1.2004. As expected, the minor (short-term) trend turned up last week adding renewed strength to the existing secondary (intermediate-term) uptrend. Initial resistance is at the previous high of $1.2762. Weekly stochastics are bullish below the overbought level of 80%.

Gasoline: The spot-month contract closed 6.21cts higher at $1.4637. The secondary (intermediate-term) trend now looks to be sideways, with last week's rally coming on reduced trade volume. Weekly stochastics are above the overbought level of 80% indicating the market could soon see a bearish turn. Initial resistance is at the 4-week high of $1.5134.

Ethanol: The spot-month contract closed 6.3cts higher at $1.508. The secondary (intermediate-term) trend is up as the spot-month contract moved to a new 4-week high of $1.524. Weekly stochastics remain bullish but nearing the overbought level of 80%.

Natural Gas: The spot-month contract closed 3.4cts higher at $1.990. The secondary (intermediate-term) trend remains up as the spot-month contract posted a new 4-week high of $2.074. However, the minor (short-term) downtrend could gain strength leading to a consolidation phase in the secondary trend.

Propane (Conway cash price): Conway propane closed 1.50cts higher at $0.4038. While the secondary (intermediate-term) trend still looks to be down, cash propane continues to rally of its recent test of support near $0.3699. This price marks the 38.2% retracement level of the previous uptrend from $0.2525 through the high of $0.4425. A minor (short-term) uptrend could result in a test of the previous high.

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