DTN’s Technical Analysis | ENERGY | Jul 9

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

Brian Milne - DTN Energy Editor,
July 9, 2018

Brent Crude Oil: The overnight market on ICE was $0.75 higher near $77.75. 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. Support is marked at $76.08, the 23.6% retracement point for the February-to-May uptrend. Brent is in backwardation, a bullish market structure, with the calendar spreads widening modestly. The relative strength index shows a neutral market condition.

Crude Oil: The overnight WTI market was flat near $73.75. The spot-month contract is in a short-term uptrend, with resistance at the recently traded $75.27 multiyear high. Support is found at $72.51, the 28.6% retracement point from the June low to the July high. Additional support is found near $70.75 and again near $69.50. 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 about 2.5cts higher near $2.1935. The spot-month contract is in a short-term uptrend, testing resistance at $2.2148, the 61.8% retracement point for the May-to-June downtrend. Resistance is again found at the June high of $2.2189. Support is marked at the $2.1579 retracement point for the same downtrend, and again at $2.1227. 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 2.0cts higher near $2.1295. The spot-month contract is in a short-term uptrend. Resistance is found at the $2.1505 retracement point, and June’s high at $2.1906. The spot-month contract has support at $2.1096, the 50% retracement point for the uptrend from the April low to the May high. 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 firmed to $2.859. The spot month is in a short-term downtrend, recently trading at a $2.822 six-week low. The spot month contract is trading on either side of $2.853, the 38.2% retracement point for the February-to-June uptrend. Support is found at the $2.792 50% retracement point for the same uptrend. The August contract continues to trade at a premium to September delivery, while fourth quarter contracts are in 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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