Technically Speaking

Weekly Analysis: Energy Markets

Source: DTN ProphetX

Brent Crude Oil: The spot-month contract closed $0.05 lower at $55.16. The secondary (intermediate-term) uptrend looks to be stalling out with the spot-month contract between resistance of $53.38 and $55.47. These prices mark the 61.8% and 67% retracement levels of the previous downtrend from $69.63 through the low of $27.10. The market posted a second consecutive doji (candlestick pattern showing indecision) on its weekly chart, while stochastics sit near the overbought level of 80%.

Crude Oil: The spot-month contract closed $1.12 higher at $53.02. The secondary (intermediate-term) trend remains sideways-to-up with the spot-month contract testing resistance at $53.96. This price marks the 76.4% retracement level of the previous secondary downtrend from $63.58 through the low of $26.05. With weekly stochastics are near the overbought level of 80%, next resistance for the major (long-term) uptrend on the market's monthly chart is at $59.96.

Distillates: The spot-month contract closed 0.95ct lower at $1.6628. The secondary (intermediate-term) trend remains up, influenced by the market's major (long-term) uptrend. With weekly stochastics near the overbought level of 80% the spot-month contract has been consolidating below its recent high of $1.7106. Major resistance is pegged at $1.6883.

Gasoline: The spot-month contract closed 6.91cts higher at $1.6262. 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 but nearing the overbought level of 80%.

Ethanol: The spot-month contract closed 1.1cts lower at $1.563. Ethanol confirmed its move to a secondary (intermediate-term) downtrend following the previous week's bearish reversal with a new 4-week low this past week. However, the spot-month contract also posted a doji (candlestick pattern indicating indecision) on its weekly chart. While this was most likely a result of quiet, pre-holiday trade it needs to be watched for a possible short-term change in direction.

Natural Gas: The spot-month contract closed 24.7cts higher at $3.662. Natural gas continues to see changing signals, with last week's rally establishing a bullish outside range on its weekly chart. A renewed secondary (intermediate-term) uptrend would be confirmed with a new 4-week high beyond $3.568. Weekly stochastics are bullish and below the overbought level of 80%. Next resistance on the weekly chart is pegged at $4.052.

Propane (Conway cash price): Conway propane closed 2.25cts higher at $0.6400. The market's secondary (intermediate-term) uptrend continues to strengthen despite weekly stochastics sitting well above the overbought level of 80%. Next major (long-term) 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.

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