Technically Speaking

Weekly Analysis: Energy Markets

Source: DTN ProphetX

Brent Crude Oil: The spot-month contract closed $0.39 higher at $51.76. The market remains in a secondary (intermediate-term) downtrend as the spot-month contract posted a new 4-week low of $50.25. This was also a test of initial support at $50.99, a price that marks the 23.6% retracement level of the previous uptrend from $27.10 through the high of $59.59. With weekly stochastics still bearish the market should fall to next support at $47.96 and $46.42, the 33% and 38.2% retracement levels.

Crude Oil: The spot-month contract closed $0.29 higher at $48.78. Similar to Brent, WTI remains in a secondary (intermediate-term) downtrend as the spot-month contract posted a new 4-week low of $47.09. This continues to test initial support at $48.35, a price that marks thee 23.6% retracement level of the previous uptrend from $26.05 through the high of $55.24. The 38.2% retracement level is down at $44.09 with the 50% at $40.65. Weekly stochastics are bearish.

Distillates: The spot-month contract closed 0.49ct higher at $1.5085. The secondary (intermediate-term) trend is down as the spot-month contract moved to a new 4-week low of $1.4784. Next support is at $1.4148, a price that marks the 38.2% retracement level of the previous uptrend from $0.8487 through the high of $1.7647.

Gasoline: The spot-month RBOB gasoline contract closed 0.12ct lower at $1.5989. The secondary (intermediate-term) remains down based on the bearish crossover by weekly stochastics the week of January 9, 2017. Initial support is at the 4-week low of $1.4734.

Ethanol: The spot-month contract closed 2.1cts higher at $1.541. The market remains in a sideways trend with resistance at the 4-week high of $1.563 and support the 4-week low of $1.473.

Natural Gas: The spot-month contract closed 6.0cts lower at $2.948. The secondary (intermediate-term) trend remains down. The recent minor (short-term) uptrend looks to be Wave B (second wave) of a 3-wave downtrend, with the spot-month contract testing resistance on the weekly chart at $3.084.

Propane (Conway cash price): Conway propane closed 5.25cts lower at $0.5350. The secondary (intermediate-term) downtrend looks to be nearing its end as cash propane holds support at $0.5281. This price marks the 67% retracement level of the previous uptrend from $0.3775 through the high $0.9100. Weekly stochastics have moved below the oversold level of 20%, setting the stage for a bullish crossover.

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