DTN’s Technical Analysis | ENERGY | Aug 23

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

Brian Milne - DTN Energy Editor,
August 23, 2018

Brent Crude Oil: The overnight market on ICE was down $0.25 near $74.55, trading at the upper end of Wednesday’s trade range. The spot-month contract is testing resistance at the $75.00 50% retracement point for the July-to-August downtrend, with additional resistance at $76.11. Retracement support is found at $73.89. The front end of the forward curve through end-year delivery is trading in contango, with the market structure flipping into backwardation in 2019—a bullish market structure. The relative strength index shows a neutral market.

Crude Oil: The overnight WTI market was little changed near $67.75, trading at the upper end of Wednesday’s trade range. The spot-month contract is testing resistance at the $68.05 61.8% retracement point for the June-to-July uptrend, with resistance again found at $69.43. Support is found at the $64.68 200-day moving average and the $64.43 August low. WTI is in a bullish backwardated market structure. The relative strength index shows a neutral market.

Distillates: The overnight market was down 0.25cts near $2.1655, trading at the upper end of Wednesday’s trade range. The spot-month contract remains range bound, with resistance found at the $2.1893 23.6% retracement point for the February-to-May uptrend. Support is found at the $2.0760 August low. The forward curve is in a weakening contango market structure through January delivery. The relative strength index shows a neutral market.

RBOB Gasoline: The overnight market was down 0.5cts near $2.0640, trading at the upper end of Wednesday’s trade range. The spot-month contract is testing resistance at the $2.0789 retracement point for the June-to-August downtrend. Retracement support is found near $2.02. The gasoline market is in seasonal backwardation through January delivery. The relative strength index shows a neutral market.

Natural Gas: The overnight market was up 0.1cts at $2.957. The spot-month contract is in a short-term uptrend, trading at a $2.993 eight-week high this week. Resistance found at the $3.053 June high. Support is marked at the $2.878 50% retracement point for the June-to-July downtrend. Support is again found at the 200-day moving average at $2.854, and the $2.840 100-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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