DTN’s Technical Analysis | ENERGY | Jul 2

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

Brian Milne - DTN Energy Editor,
July 2, 2018

Brent Crude Oil: The overnight market on ICE was down $0.50 near $78.75, as the September contract begins as nearest delivery. The spot-month contract is in a short-term uptrend, trading at a four-week high at $79.44 on Friday. Resistance is found at May’s high of $80.50. Brent is in backwardation, a bullish market structure, with the calendar spreads widening. The relative strength index shows a neutral market condition.

Crude Oil: The overnight WTI market is slightly lower near $74.00, easing off Friday’s multiyear high of $74.46. The spot-month contract is in a short-term uptrend, with resistance just above $75.00 and again from $76.38 through $76.53. 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 down 1.0cts near $2.1990 amid inside trade as August delivery rolls into the front month position. The spot-month contract is in a short-term uptrend, trading at a $2.2189 four-week high Friday. The spot-month contract has resistance at $2.2148, the 61.8% retracement point from the May high to the June low. 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 1.5cts lower near $2.1375, with the August contract now nearest to delivery. The spot-month contract has moved into a short-term uptrend, trading at a four-week high at $2.1906 Friday. The spot month contract has resistance at the $2.1505 38.2% retracement point for the uptrend from the April low to the May high, with additional resistance at the $2.2011 retracement point. 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 down 3.4cts at $2.89, trading near a $2.883 three-week low. The spot month contract is testing support at the $2.88 retracement point for the February-to-May uptrend, which coincides with the 200-day moving average at $2.874. The spot month contract has resistance at the recent $3.053 four-week high. The August contract is trading at a premium to September delivery, with fourth quarter contracts flipping into seasonal contango. The relative strength index is neutral.

*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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