DTN’s Technical Analysis | ENERGY | Jul 31

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

Brian Milne - DTN Energy Editor,
July 31, 2018

Brent Crude Oil: The overnight market on ICE was down $0.25 near $74.75, holding below Monday’s $75.27 two-week high ahead of the September contract’s expiration this afternoon. The spot-month contract has eased following Monday’s test of resistance at $75.22, the 38.2% retracement point for the April-to-May uptrend. Initial support is found at the 100-day moving average at $74.06 followed by the recent $71.19 low and the $71.13 50% retracement point for the February-to-May uptrend. The spot-month contract is in a short-term downtrend, with the forward curve in contango. The relative strength index shows a neutral market condition.

Crude Oil: The overnight WTI market was down about $0.50 near $69.75, holding below Monday’s $70.43 better than one-week high. The spot-month contract has resistance at the $70.81 38.2% retracement point for the June-to-July uptrend. Support is found at $68.05, the $67.79 100-day moving average, and the recent $67.03-$67.04 double bottom. WTI is in a bullish backwardated market structure. The relative strength index shows a neutral market condition.

Distillates: The overnight market was down 1.5cts near $2.1565 amid consolidation trade for the third straight session ahead of the August contract’s expiration this afternoon. The spot-month contract continues to retreat from last week’s test of resistance at the $2.1864 50% retracement point for the May-to-June downtrend, testing support at the $2.1579 retracement point for the same downtrend. Support is again found at the $2.1152 100-day moving average. 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 down 1.25cts near $2.1475, retreating from Friday’s $2.1850 one-month high ahead of the August contract’s expiration this afternoon. The spot-month contract is testing former resistance now support at the $2.1505 38.2% retracement point for the April-to-May uptrend, with support again found at the $2.1096 retracement point and the $2.0854 100-day moving average. The spot-month contract is in a short-term uptrend. The gasoline market is in seasonal backwardation, with the September contract narrowing its discount to August to about 4.5cts. The relative strength index shows a neutral market condition.

Natural Gas: The overnight market was down 0.5cts at $2.792. The spot-month contract continues to test resistance at $2.792, the 50% retracement point for the February-to-June uptrend. Support is marked at the July low of $2.704. The forward curve is in a contango market structure. The relative strength index shows a neutral market condition.

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