Technically Speaking

Weekly Analysis: Energy Markets

Source: DTN ProphetX

Brent Crude Oil: The spot-month contract closed $0.10 lower at $52.42. The market's secondary (intermediate-term) trend remains sideways as its minor (short-term) uptrend nears an end. The spot-month contract is poised to move toward a test of resistance $55.47, a price that marks the 67% retracement level of the previous downtrend from $69.63 through the low of $27.10.

Crude Oil: The spot-month contract closed $0.13 lower at $49.58. The market's secondary (intermediate-term) trend is sideways as the minor (short-term) uptrend runs its course. A move back to a secondary downtrend looks possible as the spot-month contract tests resistance at $50.42, a price that marks the 67% retracement level of the previous downtrend from $62.58 through the low of $26.05. Support remains near $44.09.

Distillates: The spot-month contract closed 0.89ct lower at $1.6486. The market looks poised to rejoin its secondary (intermediate-term) downtrend as the spot-month contract tests resistance at $1.6678. This price marks the 76.4% retracement level of the initial sell-off from $1.7647 through the low of $1.3540. The minor (short-term) trend has also turned down on the market's daily chart.

Gasoline: The Chicago cash RBOB gasoline market closed 2.05cts higher at $1.7013. Chicago cash gasoline remains in a secondary (intermediate-term) sideways trend between roughly $1.80 and $1.50. Weekly stochastics are neutral-to-bullish indicating a possible test of the high side of this range.

Ethanol: The spot-month contract closed 3.5cts higher at $1.576. The market's secondary (intermediate-term) trend remains sideways with support at the double-bottom low near $1.43. Resistance is at $1.593. Weekly stochastics are neutral-to-bullish.

Natural Gas: The spot-month contract closed 16.7cts lower at $2.774. 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 but nearing the oversold level of 20%.

Propane (Conway cash price): Conway propane closed 1.50cts higher at $0.7150. Cash propane's secondary (intermediate-term) trend remains up. The market is testing resistance at $0.7188, a price that marks the 50% retracement level of the previous downtrend from $0.9100 through the low of $0.5275. With weekly stochastics nearing the overbought level of 80%, cash propane could still extend its uptrend to the 67% retracement mark of $0.7838.

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