Technically Speaking

Weekly Analysis: Energy Markets

Darin Newsom
By  Darin Newsom , DTN Senior Analyst
Connect with Darin:
Source: DTN ProphetX

Brent Crude Oil: The spot-month contract closed $0.80 lower at $62.72. The lower weekly close led to a bearish crossover by weekly stochastics, indicating the market's secondary (intermediate-term) trend is in the process of turning down. Look for the spot-month contract to consolidate this week, raising initial support at the 4-week low to $60.00 (week of October 30). Eventually the market should see a test of $55.79, a price that marks the 23.6% retracement of the previous uptrend from $27.10 through the recent high of $64.65.

Crude Oil: The spot-month contract closed $0.19 lower at $56.55. The lower weekly close led to a bearish crossover by weekly stochastics, indicating the market's secondary (intermediate-term) trend is in the process of turning down. Look for the spot-month contract to consolidate this week, raising initial support at the 4-week low to $53.75 (week of October 30). Eventually the market should see a test of $50.40, a price that marks the 23.6% retracement of the previous uptrend from $26.05 through the recent high of $57.92.

P[L1] D[0x0] M[300x250] OOP[F] ADUNIT[] T[]

Distillates: The spot-month contract closed 1.17cts higher at $1.9466. The market continues to show secondary (intermediate-term) and major (long-term) uptrends on its weekly and monthly charts. However, the secondary trend could be stalling near the recent high of $1.9563 (week of November 6). Weekly stochastics are above 90% indicating a sharply overbought situation and in position for a bearish crossover signaling the end of the uptrend.

Gasoline: RBOB gasoline futures market closed 6.77cts lower at $1.7447. The secondary (intermediate-term) trend looks to be sideways with resistance at the 4-week high of $1.8402. If the spot-month contracts spends the week consolidating, the 4-week low would be raised to last week's low of $1.7258.

Ethanol: The spot-month contract closed 4.1cts lower at $1.415. The secondary (intermediate-term) trend still looks to be up despite last week's lower close. Last week's spike low of $1.384 established a double-bottom pattern with the previous low (from week of October 16) while weekly stochastics remain bullish below the oversold level of 20%. The initial upside target remains $1.473, a price that marks the 23.6% retracement level of the previous downtrend from $1.76.

Natural Gas: The spot-month contract closed 11.6cts lower at $3.097. The spot-month contract posted a bearish outside week, indicating the secondary (intermediate-term) trend may now be sideways-to-down. The range still looks to be between resistance at $3.258 and support at $2.803.

Propane (Conway cash price): Conway propane closed 4.25cts higher at $0.9700. The market moved back to a secondary (intermediate-term) uptrend as cash propane moved to a new high of $0.9800. This keeps the secondary trend in line with the market's major (long-term) trend, with next major resistance at $1.0126.

To track my thoughts on the markets throughout the day, follow me on Twitter: www.twitter.com\DarinNewsom

P[L2] D[728x90] M[320x50] OOP[F] ADUNIT[] T[]

Comments

To comment, please Log In or Join our Community .