Technically Speaking

Weekly Analysis: Energy Markets

Source: DTN ProphetX

Brent Crude Oil: The spot-month contract closed $0.11 lower at $56.70. The market remains in a secondary (intermediate-term) sideways trend between its recent high of $58.37 and low of $53.58. Weekly stochastics remain above the overbought level of 80%. It is possible the market could push higher based on its ongoing major (long-term) uptrend with the next major target between $60.83 and $65.80. However, monthly stochastics are also well above the overbought level of 80%.

Crude Oil: The spot-month contract closed $0.03 higher at $53.86. Similar to Brent, WTI is in a secondary (intermediate-term) sideways trend between the recent high of $55.24 and low of $50.71 (range of $4.53). Despite weekly and monthly stochastics in overbought territory above 80%, a bullish breakout would put the upside target at $59.77. However, major resistance at $55.61 continues to hold.

Distillates: The spot-month contract closed 0.08ct higher at $1.6651. The secondary (intermediate-term) trend has turned sideways between resistance at the recent high of $1.7647 and low of $1.5981. The major (long-term) uptrend looks to nearing its end as the spot-month contract tests resistance between $1.6883 and $1.8118 with monthly stochastics above the overbought level of 80%.

Gasoline: The spot-month contract closed 3.59cts higher at $1.5896. The spot-month contract posted a bullish outside range last week, signaling the secondary (intermediate-term) trend has turned sideways. Resistance is at the recent high of $1.7095 with support at last week's low of $1.4650. The markets major (long-term) trend remains up with next resistance at $1.7571, a price that marks the 33% retracement level of the previous major downtrend. However, monthly stochastics are nearing the overbought level of 80%.

Ethanol: The spot-month contract closed 11.2cts higher at $1.601. The market looks to have confirmed a move to a secondary (intermediate-term) uptrend with the nearby contract leaving a bullish breakaway gap between $1.503 and $1.527. The market is testing minor (short-term) resistance between $1.593 and $1.632.

Natural Gas: The spot-month contract closed 2.9cts lower at $3.034. The secondary (intermediate-term) trend remains down. The spot-month contract posted a new 4-week low of $3.034, holding below initial support at $3.084. This price that marks the 38.2% retracement level of thee previous uptrend from $1.611 through the high of $3.994. The 50% retracement level is down at $2.803.

Propane (Conway cash price): Conway propane closed 14.37cts lower at $0.6938. The secondary (intermediate-term) downtrend continues to strengthen. Cash propane closed below initial support at $0.7194, a price that marks the 33% retracement level of the previous uptrend from $0.3775 through the high $0.9100. Next support is at the 50% retracement level of $0.6238. However, with weekly stochastics gaining bearish momentum the market could fall to the 67% retracement level of $0.5281.

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