Technically Speaking

Weekly Analysis: Energy Markets

Brent Crude Oil: The spot-month contract closed $2.01 higher at $45.11. The secondary (intermediate-term) trend remains up as the spot-month contract posted a bullish outside range last week. However, weekly stochastics are above the overbought level of 80% as the contract moves toward resistance at $48.36. This price marks the 50% retracement level of the previous downtrend from $69.63 through the low of $27.10.

Crude Oil: The spot-month contract closed $3.37 higher at $43.73. The secondary (intermediate-term) trend remains up as the spot-month contract posted a bullish outside range last week. However, weekly stochastics are above the overbought level of 80% as the contract test resistance at $44.31. This price marks the 50% retracement level of the previous downtrend from $62.58 through the low of $26.05.

Distillates: The spot-month contract closed 7.67cts higher at $1.3089. The secondary (intermediate-term) trend remains up with initial resistance pegged at $1.4185. This price marks the 23.6% retracement level of the previous downtrend from $3.2633 through the low of $0.8487l. Weekly stochastics have climbed above the overbought 80% level as the spot-month contract nears this resistance.

Gasoline: The spot-month contract closed 6.97cts higher at $1.5309. The market remains in a consolidation pattern between resistance levels of $1.4296 and $1.6482 as its secondary (intermediate-term) trend nears a turn from up to down. Weekly stochastics are above the overbought 80% level, poised to establish a bearish crossover.

Ethanol: The spot-month contract closed 2.7cts lower at $1.520. The secondary (intermediate-term) trend turned down last week as the spot-month contract posted a spike reversal. This led to the establishment of a bearish crossover by weekly stochastics above the overbought level of 80%. Initial support is at $1.492, a price that marks the 33% retracement level of the previous uptrend from $1.296 through last week's spike high of $1.590. The 50% retracement level is down at $1.443.

Natural Gas: The spot-month contract closed 23.8cts higher at $2.140. The secondary (intermediate-term) trend remains up. The spot-month contract posted a new 4-week high of $2.147, still well below initial resistance at $2.763.

Propane (Conway cash price): Conway propane closed 2.25cts higher at $0.4500. Cash propane looks to have reestablished its secondary (intermediate-term) uptrend by trading above its previous high of $0.4425. Major (long-term) resistance is up at $0.5428.

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