DTN’s Technical Analysis | ENERGY | Aug 21

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

Brian Milne - DTN Energy Editor,
August 21, 2018

Brent Crude Oil: The overnight market on ICE was up $0.25 near $72.50 amid inside trade. Resistance is marked at $73.34, the 38.2% retracement point for the February-to-May uptrend. Additional resistance is found at the $75.22 and $76.08 retracement points. Support is found at the $70.30 August low, which coincides with the 200-day moving average at $70.36. The spot-month contract is in a short-term downtrend. The forward curve is in a narrowing contango market structure through end-year delivery. The relative strength index shows easing oversold pressure.

Crude Oil: The overnight WTI market was up $0.50 near $67, trading at a one-week high ahead of the September contract’s expiration this afternoon. The spot-month contract is testing retracement resistance at $67.12, with resistance again found at $68.05. The spot-month contract is in a short-term downtrend, with support found at the $64.57 200-day moving average and the $64.43 August low. WTI is in a bullish backwardated market structure, with the calendar spreads widening. The relative strength index shows modest oversold pressure.

Distillates: The overnight market was up 0.5cts near $2.12 following Monday’s inside trade session. The spot-month contract remains range bound, with support at the $2.0760 low for August and the $2.0722 retracement point. Additional support is marked at $2.0577, the 50% retracement point for the February-to-May uptrend. Resistance is found at the $2.1276 retracement point. The forward curve is in a contango market structure through January delivery. The relative strength index shows a neutral market.

RBOB Gasoline: The overnight market was up 1.0cts near $2.0250. Resistance is found at the $2.0425 38.2% retracement point for the February-to-May uptrend. The spot-month contract is in short-term downtrend, with support at the $1.9671 August low which overlaps with the $1.9674 50% retracement point for the seasonal winter-to-spring uptrend. The 200-day moving average is $1.9565. The gasoline market is in seasonal backwardation through January delivery. The relative strength index shows easing oversold pressure.

Natural Gas: The overnight market was up 3.4cts at $2.975, trading near an eight-week high of $2.984. The spot-month contract is in a short-term uptrend, with resistance found at the $3.053 June high. Support is marked at the 200-day moving average at $2.855, and the $2.835 100-day moving average. The forward curve is in a contango market structure through January delivery. The relative strength index shows an easing overbought market.

*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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