Technically Speaking

Weekly Analysis: Energy Markets

Source: DTN ProphetX

Brent Crude Oil: The spot-month contract closed $0.17 lower at $51.78. The spot-month contract continues to run into resistance at $53.38, a price that marks the 61.8% retracement level of the previous downtrend from $69.63 through the low of $27.10. Weekly stochastics remain bullish, but near the overbought level of 80%. The last secondary (intermediate-term) signal was a bearish crossover above 80% the week of June 6. Therefore the market could be poised to rejoin its secondary downtrend.

Crude Oil: The spot-month contract closed $0.50 higher at $50.85. The spot-month contract posted a new high of $51.93, beyond the June 2016 high of $51.67. However, weekly stochastics have crossed above the overbought level of 80% signaling a possible return to its previous secondary (intermediate-term) downtrend. The minor (short-term) trend has already turned down while the major (long-term) trend remains up.

Distillates: The spot-month contract closed 0.67ct higher at $1.5740. The market's minor (short-term) trend remains down with initial support at the daily low of $1.5418 (from October 17). Weekly stochastics are above the overbought level of 80% setting the stage for a possible bearish crossover. If so this would return the market to its previous secondary (intermediate-term) downtrend. Resistance remains at the 4-week high of $1.6264. The major (long-term) trend remains up.

Gasoline: The spot-month contract closed 3.78cts higher at $1.5314. The secondary (intermediate-term) trend is sideways to up as the spot-month contract posted a new 4-week high of $1.5370 last Friday. However, the last secondary signal by weekly stochastics was a bearish crossover above the overbought level of 80% the week of May 31. The major (long-term) trend remains up.

Ethanol: The spot-month contract closed 2.9cts higher at $1.609. The secondary (intermediate-term) trend is up with resistance at $1.613. This price marks the 67% 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%. The major (long-term) remains up.

Natural Gas: The spot-month contract closed 29.2cts lower at $2.993.

After testing resistance at $3.476 the previous week (with a high of $3.366), the spot-month contract is poised to confirm a move to a secondary (intermediate-term) downtrend. Support is at the 4-week low of $2.866. The major (long-term) trend is also poised to turn down at the end of October.

Propane (Conway cash price): Conway propane closed 1.75cts higher at $0.5700. The market's major (long-term) uptrend pulled cash propane to a new secondary (intermediate-term) high of $0.5425 the last couple of weeks. Though weekly stochastics are well above the overbought level of 80%, the spot-month contract could still move toward a test of next major resistance at $0.6621.

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