Technically Speaking

Weekly Analysis: Energy Markets

Brent Crude Oil: The spot-month contract closed $1.16 higher at $43.10. Despite the higher weekly close the spot-month contract was unable to close above resistance at $43.35. This price marks the 38.2% retracement level of the previous downtrend from $69.63 through the low of $27.10. With weekly stochastics well above the 80% level the market looks poised to roll over into a secondary (intermediate-term) downtrend.

Crude Oil: The spot-month contract closed $0.64 higher at $40.36. While technical indicators show the secondary (intermediate-term) trend remains up, weekly stochastics are already above the 80% level. This could lead to consolidation phase in the market with support at the 4-week low of $35.24.

Distillates: The spot-month contract closed 3.18cts higher at $1.2322. The secondary (intermediate-term) trend remains up, with weekly stochastics nearing the overbought level of 80%. If the market pulls back, support is at the 4-week low of $1.0668.

Gasoline: The spot-month contract closed 0.25cts lower at $1.4612. The lower weekly close looks to have the secondary (intermediate-term) trend turning down. Weekly stochastics are above the overbought level of 80% and in position to establish a bearish crossover.

Ethanol: The spot-month contract closed 3.9cts higher at $1.547. The secondary (intermediate-term) trend is up as the spot-month contract moved to a new 4-week high of $1.560. However, weekly stochastics are now above 80% and could start to work toward a bearish crossover.

Natural Gas: The spot-month contract closed 8.8cts lower at $1.902. Despite the lower close the secondary (intermediate-term) trend remains up. However, the minor (short-term) downtrend could gain strength leading to a possible test of minor support between $1.842 and $1.788.

Propane (Conway cash price): Conway propane closed 2.37cts higher at $0.4275. While the secondary (intermediate-term) trend still looks to be down, cash propane looks to be in the process of establishing a double-top formation near $0.4425. Support remains on $0.3699.

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