Technically Speaking

Weekly Analysis: Energy Markets

Source: DTN ProphetX

Brent Crude Oil: The spot-month contract closed $0.02 higher at $51.95. The secondary (intermediate-term) trend remains 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 $53.73, before closing back below resistance at $53.38. This price marks the 61.8% retracement level of the previous downtrend from $69.63 through the low of $27.10. The minor (short-term) trend has turned down.

Crude Oil: The spot-month contract closed $0.54 higher at $50.35. The secondary (intermediate-term) trend remains sideways-to-up. Weekly stochastics are bullish, though approaching the overbought level of 80%. The spot-month contract posted a new 4-week high of $51.60, challenging the last major (long-term) high of $51.67 (June 2016) before pulling back. The minor (short-term) trend is down with initial support at last week's low of $49.15.

Distillates: The spot-month contract closed 1.20cts lower at $1.5673. Despite posting a new 4-week high of $1.6264, indicating the secondary (intermediate-term) trend remains up, the minor (short-term) downtrend looks to be gaining momentum. Initial minor support is at $1.5659, a price that marks the 23.6% retracement level of the previou uptrend from $1.3700 through the high of $1.6264. The 38.2% retracement level is down at $1.5285.

Gasoline: The spot-month contract closed 1.18cts higher at $1.4936. The secondary (intermediate-term) trend remains sideways. Support is near $1.2820 with resistance at $1.5257 (high from the week of August 22). While the major (long-term) trend remains up, daily stochastics are indicating a possible consolidation between $1.5163 and $1.4574.

Ethanol: The spot-month contract closed 6.3cts higher at $1.580. The secondary (intermediate-term) trend is up with resistance at $1.594. This price marks the 61.8% retracement level of the previous downtrend from $1.739 through the low of $1.360. Weekly stochastics are bullish, below the overbought level of 80%.

Natural Gas: The spot-month contract closed 9.20cts higher at $3.285.

The secondary (intermediate-term) trend remains up. Next resistance is at $3.476, a price that marks the 38.2% retracement level of the previous downtrend from $6.493 through the low of $1.611. Weekly stochastics are above the overbought level of 80%, nearing a bearish crossover.

Propane (Conway cash price): Conway propane closed 1.50cts higher at $0.5525. The secondary (intermediate-term) trend remains up as cash propane posted a new high of $0.5825. Weekly stochastics are above 80% and nearing a bearish crossover. The market's major (long-term) trend remains up.

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