DTN’s Technical Analysis | ENERGY | Jan 2

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

Brian Milne - DTN Energy Editor,
January 2, 2019

Brent Crude Oil: The overnight market on ICE was down $0.45 near $53.40. The spot-month contract has support at $49.88, the 61.8% retracement point for the 2016-to-2018 uptrend. The forward curve is in a contango market structure through November 2019 delivery. The relative strength index shows easing oversold pressure.

Crude Oil: The overnight WTI market was down $0.40 near $45.00. The spot-month contract moved below support at the $45.47 61.8% retracement point for the 2016-to-2018 uptrend, testing support at the $42.05 2017 low last week with a $42.36 print. The forward curve is in contango market structure through May 2020. The relative strength index shows easing oversold pressure.

Distillates The overnight market was down 0.5cts near $1.6745. The spot-month contract is testing support at the $1.6464 50% Fibonacci extension point for the January-to-February selloff, trading at $1.6424 16-month low overnight. Support is again found at the $1.6069 61.8% extension point. The forward curve is in seasonal backwardation. The relative strength index shows modest oversold pressure.

RBOB Gasoline The overnight market was down 1.2cts near $1.2900. The spot-month contract has support at the $1.2185 23.6% Fibonacci extension point for the selloff from the August 2017 high to October 2017 low. The forward curve is in contango through June delivery. The relative strength index shows easing oversold pressure.

Natural Gas The overnight market was up 2.9cts at $2.969, reversing up from a $2.917 better-than three-month low. The spot-month contract gapped down in ending trading in 2018, leaving a gap on the spot continuous chart from $3.278 to $3.14. The spot-month contract is testing support at the $2.962 38.2% retracement point for the January-to-February uptrend. Support is again found at the $2.797 23.6% retracement point. The forward curve is in seasonal backwardation through May delivery. The relative strength index shows a neutral market.

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