DTN’s Technical Analysis | ENERGY | Jun 20

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

Brian Milne - DTN Energy Editor,
June 20, 2018

Brent Crude Oil: The overnight market on ICE was flat near $75.00 after testing retracement resistance at $76.08. The spot-month contract is in a short-term downtrend. Support is marked at $73.34, the 38.2% retracement point for the February-to-May uptrend, and at this week’s four-week low of $72.45. Brent is in backwardation, a bullish market structure, with the calendar spreads continuing to widen. The relative strength index is neutral.

Crude Oil: The overnight WTI market was slightly higher near $65.25, with resistance found at the $65.45, $66.33 and $67.19 retracement points. The spot-month contract is in a short-term downtrend, with support at $64.33, the 50% retracement point for the uptrend from December’s low to May’s high. Key support is found at $63.71—the 61.8% retracement point for the February-to-May uptrend, and this week’s four-week low of $63.59. WTI is in backwardation, a bullish market structure, with the calendar spreads widening from fourth quarter delivery and beyond as the July contract heads to expiration Wednesday afternoon. The relative strength index shows modest oversold market pressure.

Distillates: The overnight market was down 0.5cts near $2.1175. The spot-month contract moved into a short-term downtrend this week, trading at a four-week low of $2.0658. The spot-month contract is testing resistance, former support, at the $2.1165 38.2% retracement point for the February-to-May uptrend. The forward curve is in seasonal contango through end-year delivery. The relative strength index is showing an oversold market condition.

RBOB Gasoline: The overnight market was down 1.0cts near $2.0275. The spot-month contract is in a short-term downtrend. Support is marked at this week’s $2.0055 four-week low, which coincides with the 100-day moving average at $2.0062. Support is then marked at the $1.9961 50% retracement point for the February-to-May uptrend. The gasoline market is in seasonal backwardation, a price supportive market structure. The relative strength index displays an oversold market condition for the gasoline market.

Natural Gas: The overnight market was up 3.1cts at $2.931, reversing higher after testing support at the $2.88 retracement point for the February-to-May uptrend Tuesday. The spot-month contract confirmed a short-term uptrend this week after trading at a $3.053 four-week high. The front end of the forward curve remains in modest backwardation, a price supportive market structure. The relative strength index is neutral.

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