DTN’s Technical Analysis | ENERGY | Jun 1

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

Darin Newsom - DTN Senior Analyst,
June 1, 2018

Brent Crude Oil: The overnight market (ICE) was $0.31 higher at $77.86. The ongoing rally still looks to be Wave B (second wave) of a minor (short-term) 3-wave downtrend. The spot-month contract is testing resistance between $77.50 and $78.20, prices that mark the 50% and 61.8% retracement levels of Wave A from $80.50 through the low of $74.49. Wave C would be expected to move below the Wave A low.

Crude Oil: The overnight WTI market was $0.59 lower at $66.45. The market remains in a minor (short-term) 3-wave downtrend, with the recent rally (Wave B) testing resistance at $68.49. This price marks the 38.2% retracement level of Wave A from $72.83 through the low of $65.90. Wave C is now approaching the Wave A low of $65.80 and is expected to test support between $65.45 and $63.71.

Distillates: The overnight market was 0.39cts higher at $2.2085. Similar to the oil markets, the recent rally in distillates looks to be Wave B (second wave) of a standard 3-wave minor (short-term) downtrend. The spot-month contract has tested resistance at $2.2382, a price that marks the 50% retracement level of Wave A from $2.3069 through the low of $2.1696. Daily stochastics remain above the oversold level of 20% indicating the market has more room to the downside. Wave C is expected to move below the Wave A low with next support down at $2.1165.

RBOB Gasoline: The overnight market was 0.96cts higher at $2.1701. The market remains in a minor (short-term) 3-wave downtrend with Wave B (second wave) testing resistance at $2.1892. This price marks the 38.2% retracement level of Wave A from the high of $2.2855 through this week’s low of $2.1297.

Natural Gas: The overnight market was 0.4cts higher at $2.956. As natural gas has a tendency to do, it quickly erased short-term bearish technical signals by posting a new minor high of $2.988 Thursday. The next downturn would be signaled by a move to a new 4-day low, putting support Friday at Tuesday’s low of $2.838.

*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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