Technically Speaking

Weekly Analysis: Energy Markets

Source: DTN ProphetX

Brent Crude Oil: The spot-month contract closed $2.20 higher at $49.91. The market's secondary (intermediate-term) downtrend has paused while the minor (short-term) trend turned up. Short-term targets are $49.51 and $50.73, with a rally to this area likely enough to pull daily stochastics above the overbought level of 80%. This would set the stage for a move into the next short-term downtrend, putting it back in line with the secondary and major (long-term) trends.

Crude Oil: The spot-month contract closed $2.31 higher at $46.54. The market's secondary (intermediate-term) downtrend is on hold while the minor (short-term) trend has turned up. Minor targets are $47.02 and $48.20, with the potential rally likely enough to pull daily stochastics above the overbought level of 80%. If so it would set the stage for the minor turn to rejoin both the secondary and major (long-term) downtrends.

Distillates: The spot-month contract closed 6.68cts higher at $1.5150. Similar to the oil markets, distillates' secondary (intermediate-term) downtrend has paused while the minor (short-term) trend turned up. With daily stochastics nearing the overbought level of 80%, short-term targets are sitting at $1.5227 and $1.5625.

Gasoline: The spot-month RBOB gasoline contract closed 6.21cts higher at $1.5605. The market's minor (short-term) uptrend looks to be nearing its end as the spot-month contract tests resistance at $1.5656, a price that marks the 61.8% retracement level of the previous downtrend (daily close-only chart) from $1.6614 through the low of $1.4105. Daily stochastics are near the overbought 80% level.

Ethanol: The spot-month contract closed 2.0cts higher at $1.538. 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) trend also looks to be sideways.

Natural Gas: The spot-month contract closed 11.6cts higher at $2.980. 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%. The market's minor (short-term) trend remains sideways.

Propane (Conway cash price): Conway propane closed 3.38cts higher at $0.6038. Cash propane's secondary (intermediate-term) trend remains up. 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, posting a new 4-week high of $0.5200. Weekly stochastics remain bullish above the oversold level of 20%.

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