DTN’s Technical Analysis | ENERGY | Aug 7

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

Brian Milne - DTN Energy Editor,
August 7, 2018

Brent Crude Oil: The overnight market on ICE was up $1 near $74.75. The spot-month contract has resistance at $75.22, the 38.2% retracement point for the April-to-May uptrend. Support is marked at the $71.97 61.8% retracement point for the same uptrend. Support is again found at the $71.19 July low and the $71.13 50% retracement point for the February-to-May uptrend. The spot-month contract is in a short-term downtrend. The forward curve is in a contango market structure. The relative strength index shows a neutral market condition.

Crude Oil: The overnight WTI market was up $0.75 near $69.75. The spot-month contract is testing resistance at the $69.43 for the June-to-July uptrend, with retracement resistance again found at $70.81. Support is clustered from the $68.16 100-day moving average through the recent $66.92 better-than four-week low and long-term support at the $66.89 retracement point. Support is again found at $65.77. The spot-month contract is in a short-term downtrend. WTI is in a bullish backwardated market structure, with the calendar spreads narrowing. The relative strength index shows a neutral market condition.

Distillates: The overnight market was up 3.25cts near $2.1725. The spot-month contract has resistance at $2.1864, the 50% retracement point for the May-to-July downtrend. Retracement support is found at $2.0722 and $2.0577, and again at the $2.0417 July low. The forward curve is in seasonal contango through December delivery, with the calendar spreads narrowing. The relative strength index shows a neutral market condition.

RBOB Gasoline: The overnight market was up 3.0cts near $2.0950. The spot-month contract is testing resistance at $2.0945. Support is found at the $1.9982 July low. 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 0.3cts at $2.863, trading near a fresh four-week high of $2.870. The spot-month contract is in a short-term uptrend after moving through the $2.831 tweezer top formed in July and the 200-day moving average at $2.853. Resistance is marked at the $2.878 retracement for the June-to-July downtrend. Support is found at the $2.806 100-day moving average and the July low of $2.704. 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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