Technically Speaking

Weekly Analysis: Energy Markets

Source: DTN ProphetX

Brent Crude Oil: The spot-month contract closed $0.28 higher at $57.10. The secondary (intermediate-term) remains up, influenced by the market's major (long-term) trend. However, the spot-month contract continues to hold below resistance at $59.59 with weekly stochastics above the overbought level of 80%. This could soon lead to a bearish crossover.

Crude Oil: The spot-month contract closed $0.27 higher at $53.99. The secondary (intermediate-term) trend remains up with the spot-month contract posting a new 4-week high of $55.24. However, weekly stochastics are above the overbought level of 80% setting the stage for a possible bearish crossover. Next major (long-term) resistance on the market's monthly chart is at $59.96.

Distillates: The spot-month contract closed 0.11ct lower at $1.7032. The spot-month contract posted a new 4-week high of $1.7647 before falling back last week. With weekly stochastics above the overbought 80% level the market is in position for a bearish crossover followed by the establishment of a secondary (intermediate-term) downtrend. A similar situation is seen with the major (long-term) uptrend on the monthly chart.

Gasoline: The spot-month contract closed 3.11cts lower at $1.6340. The secondary (intermediate-term) uptrend looks to be nearing its end. The spot-month contract has tested resistance between $1.6482 and $1.7587, while weekly stochastics near a bearish crossover above the overbought level of 80%.

Ethanol: The spot-month contract closed 5.5cts lower at $1.551. The secondary (intermediate-term) downtrend continues to strengthen with the spot-month contract posting a new 4-week low of $1.507. Next support is at $1.465, a price that marks the 61.8% retracement level of the previous uptrend from $1.296 through the high of $1.760.

Natural Gas: The spot-month contract closed 43.9cts lower at $3.285. The secondary (intermediate-term) trend remains down. Thee spot-month contract left a bearish breakaway gap between the previous week's low of $3.664 and last week's high of $3.568 before posting a new 4-week low of $3.172. Initial support is pegged at $3.084, a price that marks the 38.2% retracement level of the previous uptrend from $1.611 through the high of $4.052. The 505 retracement level is down at $2.803.

Propane (Conway cash price): Conway propane closed 0.38cts lower at $0.7000. The market's secondary (intermediate-term) uptrend looks to be nearing its end. Cash propane is testing major (long-term) resistance ate $0.7224 while weekly stochastics sit above the 90% mark. Last week's lower close brought stochastics closer to bearish crossover that would signal the end of an uptrend and act as a warning sign for a coming downtrend.

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