DTN’s Technical Analysis | ENERGY | Feb 1

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

Darin Newsom - DTN Senior Analyst,
February 1, 2018

Brent Crude Oil: The overnight market on ICE was $0.50 higher near $69.50. Brent crude did not establish a bearish crossover by monthly stochastics above the overbought level of 80% to close out the month. Therefore it looks like the market could consolidate in early February before possibly establishing a bearish turn signal at the end of the month.

Crude Oil: The overnight WTI market was $0.35 higher near $65. Similar to Brent crude, WTI did not see a bearish crossover by monthly stochastics above the overbought level of 80% to close out the month of January. While the major (long-term) uptrend still looks to be nearing its end, it may not be clearly signaled until the end of February.

Distillates: The overnight market was 1.5cts higher near $2.08. Distillates came closest to establishing a bearish crossover by monthly stochastics above the overbought level of 80% as January ended, but came up short. That means another month, or at least a couple weeks, of testing resistance at $2.1094 before possibly establishing a bearish turn signal at the end of February.

RBOB Gasoline: The overnight market was 0.50cts higher near $1.90. RBOB’s secondary (intermediate-term) uptrend on its weekly chart seems to be stalling out. The roll from February to March as spot-month did not put the market in position to establish a bearish outside weekly range, but a late week selloff could. Weekly stochastics are in position for a bearish crossover above the overbought level of 80%.

Natural Gas: The overnight market was 6.1cts lower at $2.934. The spot-month contract is set to post a bearish outside range this week, trading well outside last week’s range through early Thursday morning. Now it comes down to the weekly close in relation to last Friday’s settlement of $3.505.

*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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Darin Newsom, www.dtn.com (c) 2017 DTN. All rights reserved.