DTN’s Technical Analysis | ENERGY | Jun 13

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

Brian Milne - DTN Energy Editor,
June 13, 2018

Brent Crude Oil: The overnight market on ICE was down slightly near $75.85 after trading at a one-week low of $75.26 overnight. The short-term trend is down after the spot-month contract traded at a $73.81 four-week low last week. The spot-month contract has support at $73.34—the 38.2% retracement point for the February-to-May uptrend. Resistance is found at $77.24. The spot-month contract remains in a long-term uptrend, with the forward curve in a bullish backwardated market structure. The relative strength index is neutral.

Crude Oil: The overnight WTI market was down $0.35 near $66.00, reversing from Tuesday’s $66.70 better-than one-week high. The short-term trend is down after the spot-month contract traded at a $64.22 four-week low last week. The spot-month WTI contract has support at the $65.43 100-day moving average, with additional support at $63.71—the 61.8% retracement point for the February-to-May uptrend. Retracement resistance is found at $66.33. WTI’s market structure remains bullish, with the forward curve inverted. The relative strength index shows an easing oversold market condition.

Distillates: The overnight market was down 0.65cts near $2.1555. The spot-month contract is trading sideways after testing key support at $2.1165 with a $2.1164 four-week low, and retracement resistance at $2.1893 last week. The forward curve is in contango which aligns with the contract’s seasonal characteristics. The relative strength index is neutral.

RBOB Gasoline: The overnight market was down 0.5cts near $2.0850, paring a decline to a one-week low at $2.0710. The market remains in a short-term downtrend after trading at a $2.0554 four-week low last week. After last week’s low, the spot-month contract has support at the $2.0435 retracement point for the February-to-May uptrend. Resistance is marked at $2.1360. The gasoline market is in seasonal backwardation, a supportive market structure. The relative strength index is neutral although nearing oversold.

Natural Gas: The overnight market was flat at $2.939. The spot-month contract tested initial resistance during Tuesday’s session at May’s $2.988 four-week high. Resistance is marked at $3.095, the 50% retracement point for the January-to-February downtrend from $3.661 to $2.53. The spot-month contract has retracement support at $2.88 which coincides with the 200-day moving average at $2.876. Additional support is found at the $2.813 retracement point and the 100-day moving average at $2.80. The front end of the forward curve is in modest backwardation, a price supportive market structure. 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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