DTN’s Technical Analysis | ENERGY | Aug 16

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

Brian Milne - DTN Energy Editor,
August 16, 2018

Brent Crude Oil: The overnight market on ICE was flat near $70.75. The spot-month contract is in a short-term downtrend, trading at a four-month low of $70.30 Wednesday. The spot-month contract moved through support at the $71.13 50% retracement point for the February-to-May uptrend. Support is now marked at the $70.23 200-day moving average, with additional support just below $69. The forward curve is in a contango market structure through January delivery. The relative strength index shows oversold pressure is building.

Crude Oil: The overnight WTI market was flat near $65 after trading at a $64.43 two-month low. The spot-month contract is in a short-term downtrend. The spot-month contract moved through support at $65.77, the 23.6% retracement point for the May-to-June downtrend. Support is now found at the $64.39 200-day moving average, with support then found at the $63.59 June low. WTI is in a bullish backwardated market structure. The relative strength index shows an oversold market.

Distillates: The overnight market was flat near $2.0910. The spot-month contract tested support at the $2.0722 retracement point with a $2.0760 four-week low. Additional support is marked at $2.0577, the 50% retracement point for the February-to-May uptrend. The forward curve is in a contango market structure through January delivery. The relative strength index shows oversold pressure is building.

RBOB Gasoline: The overnight market was down 1.5cts near $1.9825. The spot-month contract is in short-term downtrend, trading at a $1.9772 four-month low overnight. Support is found at the $1.9661 50% retracement point for the February-to-May uptrend, and again at the 200-day moving average at $1.9528. The gasoline market is in seasonal backwardation through January delivery. The relative strength index shows oversold pressure is building.

Natural Gas: The overnight market was down 0.3cts at $2.937. The spot-month contract is in a short-term uptrend, trading at a two-month high of $2.974 Tuesday. Resistance is found at the $3.053 June high. Support is marked at the 200-day moving average at $2.855, and the $2.828 100-day moving average. The forward curve is in a contango market structure through January delivery. The relative strength index shows a building overbought 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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