DTN’s Technical Analysis | ENERGY | Aug 1

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

Brian Milne - DTN Energy Editor,
August 1, 2018

Brent Crude Oil: The overnight market on ICE was down $1 near $73.25, gapping down slightly as the October contract becomes nearest delivery. The spot-month contract is in a short-term downtrend, moving below support at the 100-day moving average at $74.14. Support is found at the $71.19 July low and the $71.13 50% retracement point for the February-to-May uptrend. Resistance is found at $75.22, the 38.2% retracement point for the April-to-May uptrend. The forward curve is in modest contango market structure. The relative strength index shows a neutral market condition.

Crude Oil: The overnight WTI market was down $0.75 near $68.00. The spot-month contract is testing support at $68.05, the 61.8% retracement point for the June-to-July uptrend. Additional support is marked at the $67.84 100-day moving average, and the $67.03-$67.04 double bottom. Resistance is marked at the $70.81 38.2% retracement point for the June-to-July uptrend. WTI is in a bullish backwardated market structure. The relative strength index shows a neutral market condition.

Distillates: The overnight market was down 3.0cts near $2.1065, as the September contract rolls into the front month slot. The spot-month contract moved below support at the $2.1172 100-day moving average, testing support at $2.1043, the 23.6% retracement point for the May-to-July downtrend. The forward curve is in seasonal contango through January delivery. The relative strength index shows a neutral market condition.

RBOB Gasoline: The overnight market was down 1.5cts near $2.0645, gapping down 3.8cts with the transition from the August contract as nearest delivery to the September contract. The spot-month contract has support at $2.0436, the 23.6% retracement point for the June-to-July downtrend. The gasoline market is in seasonal backwardation through January delivery. The relative strength index shows a neutral market condition.

Natural Gas: The overnight market was down 2.5cts at $2.757. The spot-month contract is trading in a sideways pattern, with support at the July low of $2.704. Resistance is found at the $2.792 50% retracement point for the February-to-June uptrend. The forward curve is in a contango market structure through January delivery. The relative strength index shows a neutral market condition.

*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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