DTN’s Technical Analysis | ENERGY | Jul 23

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

Brian Milne - DTN Energy Editor,
July 23, 2018

Brent Crude Oil: The overnight market on ICE was $1.25 higher near $74.35. The spot-month contract is in a short-term downtrend, trading at a more than three-month low at $71.19 last week. Support is marked at the $71.13 50% retracement point for the February-to-May uptrend. Retracement resistance is found at $76.08. The front end of the forward curve is in a contango market structure. The relative strength index shows a neutral market condition.

Crude Oil: The overnight WTI market was almost $1.00 higher near $69.25, narrowing a modest down gap as the September contract moves into nearest to delivery. The spot-month contract is testing resistance at the $69.43 retracement point for the June to July uptrend. Support is marked at the $67.19 retracement point for the same trend, tested last week with a $67.03-$67.04 double bottom. The 100-day moving average at $67.33 lends support. WTI is in backwardation, a bullish market structure, although the calendar spreads have narrowed sharply. The relative strength index shows a neutral market condition.

Distillates: The overnight market was 3.5cts higher near $2.1400. The spot-month contract is in a short-term downtrend, trading at a fourth-month low at $2.0417 last week. The spot-month contract is again testing resistance at the $2.1227 23.6% retracement point for the May-to-June downtrend, with support marked at the $2.0989 100-day moving average. The forward curve is in seasonal contango through year end. The relative strength index shows a neutral market condition.

RBOB Gasoline: The overnight market was 3.0cts higher near $2.1000. The spot-month contract is testing resistance at the $2.1096 50% retracement point for the April-to-May uptrend. Support is marked at the $2.0714 100-day moving average, and the recent low of $1.9982. The gasoline market is in seasonal backwardation, lending upside price support. The relative strength index shows a neutral market condition.

Natural Gas: The overnight market was down 2.6cts at $2.731. The spot month contract is in a short-term downtrend, trading at a $2.704 five-month low last week. Support is found at $2.705, the 61.8% retracement point for the February-to-May uptrend. The front-end of the forward curve is in backwardation, which flips into contango with the September contract. The relative strength index shows an oversold market condition.

*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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