DTN’s Technical Analysis | ENERGY | May 31

Daily technical analysis of crude oil, heating oil, gasoline and natural gas

Darin Newsom - DTN Senior Analyst,
May 31, 2018

Brent Crude Oil: The overnight market on ICE was flat at $77.50. The market remains in a minor (short-term) three-wave downtrend on its daily chart with the recent rally Wave B (second wave). This has resulted in a test of resistance at $77.50, a price that marks the 50% retracement level of Wave A from $80.50 through the low of $74.49. Wave C would be expected to move below the Wave A low.

Crude Oil: The overnight WTI market was $0.75 lower near $67.50. The market remains in a minor (short-term) three-wave downtrend, with the recent rally (Wave B) testing resistance at $68.49. This price marks the 38.2% retracement level of Wave A from $72.83 through the low of $65.90. Wave C would be expected to move below the Wave A low to test support between $65.45 and $63.71.

Distillates: The overnight market was 1.25cts lower near $2.2195. Similar to the oil markets, the recent rally in distillates looks to be Wave B (second wave) of a standard three-wave minor (short-term) downtrend. The spot-month contract has tested resistance at $2.2382, a price that marks the 50% retracement level of Wave A from $2.3069 through the low of $2.1696. Daily stochastics remain above the oversold level of 20% indicating the market has more room to the downside.

RBOB Gasoline: The overnight market was flat near $2.1845. The market remains in a minor (short-term) three-wave downtrend with Wave B (second wave) testing resistance at $2.1892. This price marks the 38.2% retracement level of Wave A from the high of $2.2855 through this week’s low of $2.1297.

Natural Gas: The overnight market was 2.4cts higher at $2.909. Like the other energy markets, natural gas remains in a three-wave minor (short-term) downtrend with the recent rally looking to be Wave B (second wave). This has resulted in a test of resistance at $2.903, the 50% retracement level of Wave A from $2.968 through the low of $2.838 (Tuesday’s session range).

*For technical analysis of monthly (long-term) and weekly (intermediate-term) trends see DTN’s Technically Speaking blog on your ProphetX system.

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