DTN’s Technical Analysis | ENERGY | Aug 27

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

Brian Milne - DTN Energy Editor,
August 27, 2018

Brent Crude Oil: The overnight market on ICE was down slightly near $75.65 amid inside trade. The spot-month contract is in a short-term uptrend, trading at a $75.82 six-week high Friday. Resistance is at the $76.11 61.8% retracement point for the July-to-August downtrend, and again at $77.24. Retracement support is found at $73.89. October delivery is trading at a discount to the November contract, with the forward curve then flipping into a bullish backwardated market structure. The relative strength index shows a neutral market.

Crude Oil: The overnight WTI market was down about $0.25 near $68.50 amid inside trade. The spot-month contract has resistance at $69.43, the 50% retracement point for the June-to-July uptrend. Support is found at the $64.80 200-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 0.5cts near $2.1980, consolidating within Friday’s trade range. The spot-month contract is in a short-term uptrend, trading at a $2.2175 six-week high Friday. Resistance is found at the $2.2189 June high. The forward curve is in a weakening contango market structure through December delivery. The relative strength index shows a neutral market.

RBOB Gasoline: The overnight market softened to $2.0770 amid inside trade. The spot-month contract continues to test resistance at the $2.0789 retracement point for the June-to-August downtrend. Resistance is again found at $2.1052. The gasoline market is in seasonal backwardation through January delivery. The relative strength index shows a neutral market.

Natural Gas: The overnight market was down 0.6cts at $2.911. Despite the lower trade, the spot-month contract is in a short-term uptrend. 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 $2.852, and the $2.844 100-day moving average. Resistance is found at last week’s $2.993 eight-week high, and at the $3.053 June high. The September contract is trading at a modest premium to October delivery ahead of its expiration Wednesday afternoon, with the forward curve then moving into contango through January delivery. The relative strength index shows a neutral 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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