Technically Speaking

Weekly Analysis: Energy Markets

Source: DTN ProphetX

Brent Crude Oil: The spot-month contract closed $2.77 higher at $53.61. The market's minor (short-term) uptrend within its secondary (intermediate-term) downtrend looks to be nearing its end. The spot-month contract is testing minor resistance at $53.89 while daily stochastics have climbed to 90%. If the market sees one more up week against its secondary trend, next minor resistance is pegged at $55.60.

Crude Oil: The spot-month contract closed $2.49 higher at $50.33. The market's minor (short-term) uptrend within its secondary (intermediate-term) downtrend looks to be nearing its end. The spot-month contract is testing minor resistance at $50.85 while daily stochastics have climbed above 80%. If the market sees one more up week against its secondary trend, next minor resistance is pegged at $52.53.

Distillates: The spot-month contract closed 8.94cts higher at $1.5827. Similar to the oil markets, distillates' minor (short-term) uptrend within its secondary (intermediate-term) downtrend looks to be nearing its end. The spot-month contract is moving toward minor resistance at $1.6158 while daily stochastics have climbed to near 90%.

Gasoline: The spot-month RBOB gasoline contract closed 7.62cts higher at $1.6523. Gasoline continues to show a secondary (intermediate-term) sideways trend on its weekly bar chart. Secondary resistance remains at $1.7600 with support at $1.4373. The market remains in a minor (short-term) uptrend on daily charts with next resistance at $1.6952. Daily stochastics are nearing the overbought level of 80%.

Ethanol: The spot-month contract closed 2.5cts lower at $1.483. While the secondary (intermediate-term) trend remains sideways, the market's minor (short-term) trend has turned up. Initial support is at $1.492, a price that marks the 23.6% retracement level of the previous minor downtrend from $1.692 through the low of $1.43. The 38.2% retracement level is up at $1.53. Recent daily activity has seen the nearby contract establish a double-bottom low and bullish crossover by stochastics below the oversold level of 20%.

Natural Gas: The spot-month contract closed 16.8cts lower at $3.256. The secondary (intermediate-term) trend remains down with the recent high of $3.431 looking to be the Wave B (second wave) peak of a 3-wave downtrend. If so the spot-month contract would be expected to take out the Wave 1 low of $2.521 over the coming weeks.

Propane (Conway cash price): Conway propane closed 3.63cts higher at $0.6388. The secondary (intermediate-term) trend remains up with cash propane testing Initial resistance at $0.6537. This price marks thee 33% retracement level of the previous downtrend from $0.9100 through the low of $0.5275. The 50% retracement level is up at $0.7188.

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