Technically Speaking

Weekly Analysis: Energy Markets

Source: DTN ProphetX

Brent Crude Oil: The spot-month contract closed $4.30 higher at $50.19. The secondary (intermediate-term) trend is sideways-to-up. Weekly stochastics are bullish, though never established a crossover below the oversold level of 20%. The spot-month contract posted a new 4-week high of $50.27, with the next target the high of $51.22 (from week of August 15). The major (long-term) and minor (short-term) trends are both up.

Crude Oil: The spot-month contract closed $3.76 higher at $48.24. The spot-month contract posted a new 4-week high, creating a sideways-to-up secondary (intermediate-term) trend. Initial resistance is at $48.75 (high from the week of August 15), then the high of previous sell-off of $51.67 from week of June 6.

Distillates: The spot-month contract closed 13.10cts higher at $1.5383. The secondary (intermediate-term) trend is sideways-to-up after the spot-month contract posted a new high of $1.5400. Next resistance is the previous secondary high of $1.5848.

Gasoline: The spot-month contract closed 8.62cts higher at $1.4631. The secondary (intermediate-term) trend is sideways. Support is near $1.2820 with resistance at $1.5257 (high from the week of August 22). Weekly stochastics are neutral to bullish near 50%.

Ethanol: The spot-month contract closed 0.1ct higher at $1.547. The minor (short-term) trend has turned down, likely bring to an end the recent secondary (intermediate-term) rally. The spot-month contract established a doji (candlestick pattern) on its weekly chart, a pattern that often leads to a change in trend as it reflects market indecision. This after the spot-month contract continues to test resistance between $1.550 and $1.594, prices that mark the 50% and 61.8% retracement levels of the previous downtrend from $1.739 through the low of $1.360.

Natural Gas: The spot-month contract closed 4.9cts lower at $2.906. Both the minor (short-term) and secondary (intermediate-term) trends remain down. Initial secondary support is at $2.603, a price that marks the 33% retracement level of the previous uptrend from $1.611 through the high of $3.098. Both weekly and daily stochastics are bearish.

Propane (Conway cash price): Conway propane closed 2.00cts higher at $0.5000. The secondary (intermediate-term) trend remains up as cash propane cleared resistance at $0.4941. This price marks the 76.4% retracement level of the previous downtrend from $0.5425 through the low of $0.3375, setting the stage for a test of the previous high.

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