Technically Speaking

Weekly Analysis: Energy Markets

Source: DTN: ProphetX

Brent Crude Oil: The spot-month contract closed $1.21 lower at $46.71. The market's secondary (intermediate-term) downtrend looks to be nearing its end as weekly stochastics approach the oversold level of 20%. The spot-month contract continues to test support at $46.42, a price that marks the 38.2% retracement level of the previous uptrend from $27.10 through the high of $58.37. The 50% retracement level is down at $42.73.

Crude Oil: The spot-month contract closed $1.81 lower at $44.23. The market's secondary (intermediate-term) downtrend looks to be nearing its end as weekly stochastics approach the oversold level of 20%. The spot-month contract continues to test support at $44.09, a price that marks the 38.2% retracement level of the previous uptrend from $26.05 through the high of $55.24. The 50% retracement level is down at $40.65.

Distillates: The spot-month contract closed 2.73cts lower at $1.4482. Similar to the oil markets, distillates' secondary (intermediate-term) downtrend looks to be nearing its end as weekly stochastics approach the oversold level of 20%. The spot-month contract is testing support 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. The 50% retracement level is down at $1.3067.

Gasoline: The spot-month RBOB gasoline contract closed 1.68cts lower at $1.4984. Similar to the oil markets, RBOB's secondary (intermediate-term) downtrend looks to be nearing its end as weekly stochastics approach the oversold level of 20%. The spot-month contract has tested support at $1.4342, a price that marks the 38.2% retracement level of the previous uptrend from $0.8975 through the high of $1.7710. The 50% retracement level is down at $1.3318.

Ethanol: The spot-month contract closed 0.9ct higher at $1.518. The market's secondary (intermediate-term) trend remains sideways with support at the double-bottom low near $1.43. Weekly stochastics are neutral-to-bearish above the oversold level of 20%. The market's minor (short-term) uptrend remains in place.

Natural Gas: The spot-month contract closed 17.1cts lower at $2.864. The secondary (intermediate-term) trend remains down with support still pegged at $2.521. This price marks the 61.8% retracement level of the previous uptrend from $1.611 through the high of $3.994. Weekly stochastics are bearish above the oversold level of 20%.

Propane (Conway cash price): Conway propane closed 1.50cts higher at $0.5700. As expected, cash propane has rejoined its previous secondary (intermediate-term) uptrend. The market continues to rally off its recent test of support at $0.5281, a price that marks the 67% retracement level of the previous uptrend from $0.3375 through the high of $0.9100. Weekly stochastics remain bullish above the oversold level of 20%.

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