Technically Speaking

Weekly Analysis: Energy Markets

Source: DTN ProphetX

Brent Crude Oil: The spot-month contract closed $0.89 lower at $55.81. 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 $0.46 lower 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). Weekly and monthly stochastics remain in overbought territory above 80%, with major resistance at $55.61 continuing to hold.

Distillates: The spot-month contract closed 2.95cts lower at $1.6364. 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 7.30cts lower at $1.5166. The secondary (intermediate-term) trend still looks to be sideways. However, the spot-month March contract is threatening a move to a new 4-week low below $1.4650 before expiring at the end of the month. At that time the strong contango to the April contract will skew daily, weekly, and monthly charts.

Ethanol: The spot-month contract closed 8.1cts lower at $1.520. Last week's sell-off looks to have established a secondary (intermediate-term) sideways trend. Resistance is at the 4-week high of $1.612 while support is at the recent low of $1.425.

Natural Gas: The spot-month contract closed 20.0cts lower at $2.834. The secondary (intermediate-term) trend remains down. The spot-month contract is testing support at $2.803, a price that marks the 38.2% retracement level of the previous uptrend from $1.611 through the high of $3.994. The 61.8% retracement level is down at $2.521.

Propane (Conway cash price): Conway propane closed 4.88cts lower at $0.6350. The secondary (intermediate-term) downtrend continues to strengthen. Cash propane closed is testing support at $0.6238, a price that marks the 50% retracement level of the previous uptrend from $0.3775 through the high $0.9100. Next support is at the 67% retracement level of $0.5281.

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