Technically Speaking

Weekly Analysis: Energy Markets

Source: DTN ProphetX

Brent Crude Oil: The spot-month contract closed $0.88 higher at $55.21. The secondary (intermediate-term) trend remains sideways-to-up, with the spot-month contract testing resistance at $55.47. This price marks the 67% retracement level of the previous secondary downtrend from $69.63 through the low of $27.10. The major (long-term) trend remains up on the monthly chart with next resistance pegged at $65.80. The recent bullish breakout of a sideways consolidation pattern puts the upside target at $64.21.

Crude Oil: The spot-month contract closed $0.40 higher at $51.90. As with Brent crude, the secondary (intermediate-term) trend remains sideways-to-up. As expected the spot-month contract is testing next resistance at $53.96, a price that marks the 76.4% retracement level of the previous secondary downtrend from $63.58 through the low of $26.05. Next resistance for the major (long-term) uptrend on the market's monthly chart is at $59.96.

Distillates: The spot-month contract closed 3.49cts higher at $1.6723. Similar to both crude oil markets, the major (long-term) uptrend has overridden previous bearish signals on the secondary (intermediate-term) weekly chart. However the spot-month contract is testing next major resistance at $1.6883, a price that marks the 33% retracement level of the previous major downtrend from $3.3700 through the low of $0.8487, while monthly stochastics are above the overbought level of 80%.

Gasoline: The spot-month contract closed 4.98cts higher at $1.5571. The secondary (intermediate-term) trend remains sideways, with a wide range between support at $1.2820 and resistance at $1.6482. Weekly stochastics are bullish meaning the spot-month contract could press the high side of this range.

Ethanol: The spot-month contract closed 10.9cts lower at $1.574. Ethanol posted a bearish reversal last week, falling and closing below the previous week's low of $1.577 after posting a new high of $1.760. This would indicate the secondary (intermediate-term) trend has turned down, with initial support at the new 4-week low (last week's low) of $1.550.

Natural Gas: The spot-month contract closed 33.1cts lower at $3.415. Natural gas continues to see changing signals, with last week's sell-off indicating a return to the previous secondary (intermediate-term) downtrend. More importantly, the market's major (long-term) trend also looks to be nearing a downturn after testing resistance at $3.665.

Propane (Conway cash price): Conway propane closed 0.75ct higher at $0.6175. The market's major (long-term) uptrend has strengthened the secondary (intermediate-term) uptrend on weekly charts. Next major resistance on the monthly chart remains at $0.6621, a price that marks the 33% retracement level of the previous downtrend from $1.4825 through the low of $0.2525.

To track my thoughts on the markets throughout the day, follow me on Twitter: www.twitter.com\DarinNewsom

Comments

To comment, please Log In or Join our Community .