DTN’s Technical Analysis | ENERGY | Jul 11

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

Brian Milne - DTN Energy Editor,
July 11, 2018

Brent Crude Oil: The overnight market on ICE was down nearly $2.00 to $77.00. Support is marked at $76.08, the 23.6% retracement point for the February-to-May uptrend. Despite the overnight decline, the spot-month contract is in a short-term uptrend. Resistance is found at the June high at $79.44, and the May high at $80.50. Brent is in backwardation, a bullish market structure, with the calendar spreads narrowing. The relative strength index shows a neutral market condition.

Crude Oil: The overnight WTI market was down $0.65 near $73.50. Support is found at $72.51, the 28.6% retracement point for the June low to the July high. Additional support is found near $70.75 and again near $69.50. Despite the overnight decline, the spot-month contract is in a short-term uptrend. Resistance is found at the recently traded $75.27 multiyear high. WTI is in backwardation, a bullish market structure, with the calendar spreads widening. The relative strength index shows overbought market pressure.

Distillates: The overnight market was 3.75cts lower near $2.1850, testing support at former resistance at $2.1864. Support is again marked at the $2.1579 retracement point for the May-to-June downtrend, and again at $2.1227. Despite the lower move overnight, the spot-month contract is in a short-term uptrend, trading at a six-week high of $2.2332 Tuesday. Resistance is found at the $2.2148 retracement point and the June high of $2.2189. The forward curve is in seasonal contango through January delivery. The relative strength index shows a neutral market condition.

RBOB Gasoline: The overnight market was 3.75cts lower near $2.1225. The spot-month contract has support at $2.1096, the 50% retracement point for the uptrend from the April low to the May high. While down overnight, the spot-month contract is in a short-term uptrend. Resistance is found at the $2.1505 retracement point and the June high at $2.1906. The gasoline market is in seasonal backwardation, a price supportive market structure. The relative strength index shows a neutral market condition.

Natural Gas: The overnight market was up 1.0cts at $2.798. The spot month contract is in a short-term downtrend, trading at a $2.78 eight-week low overnight. The spot month contract is testing support at the $2.792 50% retracement point for the February-to-June uptrend, with additional support at $2.73. The August contract holds a premium to September delivery, while fourth quarter contracts are in seasonal contango. The relative strength index is neutral, although showing oversold pressure is building.

*For technical analysis of monthly (long-term) and weekly (intermediate-term) trends see DTN’s Technically Speaking blog on your ProphetX system.

Click here for more information onDTN ProphetX®, or here for a free trial of DTN ProphetX® Energy Edition.

(c) 2017 DTN. All rights reserved.