DTN’s Technical Analysis | ENERGY | Jan 22

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

Brian Milne - DTN Energy Editor,
January 22, 2019

Brent Crude Oil: The overnight market on ICE was down $1.05 near $61.70. The spot-month contract reversed from Monday’s $63.15 six-week high. Resistance is found at the $65.54 50% retracement point for the 2017-to-2018 uptrend, with support marked at $54.60. March delivery is at a premium to the April contract, with the back half of 2019 in backwardation, a bullish signal. The relative strength index shows a neutral market.

Crude Oil: The overnight WTI market was down $0.90 at $52.90 ahead of the February contract’s expiration at today’s close, reversing off a six-week high of $54.24. Resistance in found at the $55.36 61.8% retracement point for the 2017-to-2018 uptrend, with support marked at $45.47. The forward curve is in a contango market structure through November delivery. The relative strength index shows a neutral market.

Distillates: The overnight market was down 1.75cts at $1.8985, reversing off a $1.9265 six-week high. The spot-month contract has resistance at the $2.0313 38.2% retracement point for the 2017-to-2018 uptrend, with support at the $1.7727 61.8% retracement point. The forward curve is in seasonal backwardation. The relative strength index shows a neutral market.

RBOB Gasoline: The overnight market was down 2.8cts near $1.4250. The spot-month contract rallied above resistance at the $1.4277 61.8% retracement point for the 2016-to-2018 uptrend, and the 50-day moving average which is now at $1.4302 on Friday, trading at a $1.4677 five-week high. Resistance is found at $1.5340, with support at $1.3838. The forward curve is in contango through June delivery. The relative strength index shows a neutral market.

Natural Gas: The overnight market was down 21.4cts at $3.268 amid inside trade. February natural gas will look to fill the gap on the spot continuation chart at $3.166, with a move below the 200-day moving average at $3.155 triggering more selling. Retracement support is found at $3.095. The forward curve is in seasonal backwardation through May delivery. The relative strength index shows a neutral market.

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