Technically Speaking

Weekly Analysis: Energy Markets

Source: DTN ProphetX

Brent Crude Oil: The spot-month contract closed $3.16 lower at $67.11. The market remains in a secondary (intermediate-term) downtrend. Initial support is at the 4-week low $64.05, with retracement support down at $60.85. This prices marks the 23% level of the previous uptrend from $27.10 through the high of $71.28. Weekly stochastics remain bearish below the overbought level of 80%.

Crude Oil: The spot-month contract closed $2.88 lower at $62.06. Similar to Brent crude, WTI remains in a secondary (intermediate-term) downtrend. Initial support is at the 4-week low of $60.11, then $57.08. The latter marks the 23.6% retracement level of the previous uptrend from $26.05 through the high of $66.66. Weekly stochastics remain bearish below the overbought level of 80%.

Distillates: The spot-month contract closed 7.06cts lower at $1.9578. Distillates remain in a secondary (intermediate-term) downtrend with the recent minor (short-term) uptrend looking to be Wave B (second wave) of a 3-wave downtrend. Wave c (third wave) is expected to move below the Wave A low of $1.8084, with next support down at $1.6486. This price marks the 38.2% retracement level of the previous uptrend from $0.8487 through the high of $2.1431.

Gasoline: RBOB gasoline futures market closed 6.32cts lower at $1.947. The market looks to have rolled into a secondary (intermediate-term) downtrend last week, with the lower weekly close leading to a bearish crossover by weekly stochastics above the overbought level of 80%. Initial support is at the 4-week low of $1.8574.

Ethanol: The spot-month contract closed 2.0cts lower at $1.434. The market remains in a secondary (intermediate-term) downtrend with the nearby contract testing support at $1.427 last week. This price marks the 38.2% retracement level of the previous uptrend from $1.251 through the recent high of $1.535. The 50% retracement level is down at $1.393. Weekly stochastics are bearish below the overbought level of 80%.

Natural Gas: The spot-month contract closed 3.2cts lower at $2.701. Despite its lower weekly close the market still looks to be in a secondary (intermediate-term) uptrend. Initial resistance is at the 4-week high of $2.811. Weekly stochastics are below the oversold level of 20% and nearing a bullish crossover.

Propane (Conway cash price): Conway propane closed 6.50cts lower at $0.5975. Cash propane looks to have established a double-bottom near $0.5850 last week. Weekly stochastics are below the oversold level of 20%.

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

Comments

To comment, please Log In or Join our Community .