Technically Speaking

Weekly Analysis: Energy Markets

Brent Crude Oil: The spot-month contract closed $2.46 higher at $47.83. The secondary (intermediate-term) trend looks to have turned up again after posting a bullish outside range last week. This also has the secondary trend in line with the market's major (long-term) trend. However weekly stochastics remain above the overbought 80% level as the spot-month contract tests resistance at $48.36, a price that marks the 50% retracement level of the previous downtrend. Beyond that the 4-week high is at $48.50.

Crude Oil: The spot-month contract closed $1.55 higher at $46.21. The secondary (intermediate-term) trend remains up as the spot-month contract posted a bullish outside range as well as a new 4-week high last week. This has the market in line with its major (long-term) trend. However, weekly stochastics are well above the overbought level of 90%. Next resistance is at $48.63, the 61.8% retracement level of the previous downtrend from $62.58 through the low of $26.05.

Distillates: The spot-month contract closed 6.58cts higher at $1.4031. The secondary (intermediate-term) trend looks to have turned up again despite weekly stochastics showing the market to be sharply overbought. The spot-month contract posted a bullish outside range last week but remains below resistance at $1.4185 and the 4-week high of $1.4125. This could spark a round of new selling interest. However, the major (long-term) trend remains up.

Gasoline: The spot-month contract closed 9.20cts higher at $1.5882. Despite the higher weekly close the secondary (intermediate-term) trend still looks to be down. With weekly stochastics well above the overbought 80% level the spot-month contract is holding below its 4-week high of $1.6105 and resistance at $1.6482, a price that marks the 33% retracement level of the market's previous downtrend.

Ethanol: The spot-month contract closed 3.2cts higher at $1.544. The spot-month contract has rallied off its test of support at $1.492, setting up a potential move to a double-top formation near $1.59. Weekly stochastics remain near the overbought level of 80% and could establish a secondary (confirming) bearish crossover in the coming weeks.

Natural Gas: The spot-month contract closed 0.5ct lower at $2.096. The market remains in a slow moving secondary (intermediate-term) uptrend. Initial resistance is pegged at $2.495, a price that marks the 2016 high posted the week of January 4.

Propane (Conway cash price): Conway propane closed 3.75cts higher at $0.5000. The secondary (intermediate-term) trend remains up, in step with its major (long-term) trend. Major resistance is pegged at $0.5428, a price that marks the 23.6% retracement level of the previous downtrend from 41.4825 through the low of $0.2525.

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