Technically Speaking

Weekly Analysis: Energy Markets

Source: DTN ProphetX

Brent Crude Oil: The spot-month contract closed $2.03 higher at $52.83. While the market remains in a secondary (intermediate-term) downtrend, its minor (short-term) trend is up with next resistance at $54.04. This price marks the 50% retracement level of the minor downtrend, secondary sell-off, from $58.37 through the low of $49.71. Weekly stochastics remain bearish above the oversold level of 20%.

Crude Oil: The spot-month contract closed $2.63 higher at $50.60. Similar to Brent, WTI remains in a secondary (intermediate-term) while showing a minor (short-term) uptrend. Next minor resistance is at $51.13, the 50% retracement level of the previous downtrend, secondary sell-off, from $55.24 through the low of $47.01. Weekly stochastics remain bearish above the oversold level of 20%.

Distillates: The spot-month contract closed 7.60cts higher at $1.5736. While the secondary (intermediate-term) trend remains down, the market has posted a solid minor (short-term) uptrend. The spot-month contract is near minor resistance at $1.5720, the 33% retracement level of the previous downtrend from $1.7647 through the low of $1.4758. Daily stochastics are nearing the overbought level of 80%.

Gasoline: The spot-month RBOB gasoline contract closed 9.53cts higher at $1.7001. While gasoline is showing a secondary (intermediate-term) sideways trend on its standard weekly bar chart, the weekly close only shows a seasonal uptrend in place. Given that it looks like the market could extend its recent rally to a test of resistance at $1.7587.

Ethanol: The spot-month contract closed 5.7cts higher at $1.615. The market established a secondary (intermediate-term) uptrend as it posted a new 4-week high of $1.617. Resistance is at $1.632, a price that marks the 61.8% retracement level of the previous downtrend from $1.76 through the low of $1.425.

Natural Gas: The spot-month contract closed 11.4cts higher at $3.190. While the secondary (intermediate-term) trend remains down, the continued rally by the spot-month contract is a solid Wave B (second wave) of a 3-wave downtrend. Next resistance is at $3.258, a price that marks the 50% retracement level of Wave A from $3.994 through $2.522.

Propane (Conway cash price): Conway propane closed 2.12ct higher at $0.5425. 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 remain below the oversold level of 20%, nearing a bullish crossover.

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