DTN’s Technical Analysis | ENERGY | Jun 21

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

Brian Milne - DTN Energy Editor,
June 21, 2018

Brent Crude Oil: The overnight market on ICE was down more than $1.00 near $73.50. The spot-month contract is in a short-term downtrend. The spot-month contract is testing support at $73.34, the 38.2% retracement point for the February-to-May uptrend, and in position to test additional support at the week’s four-week low of $72.45. Additional retracement support is marked at $71.97 and $71.13. Resistance is marked the $76.08 retracement point for the February-to-May uptrend. Brent is in backwardation, a bullish market structure, with the calendar spreads tightening. The relative strength index shows an oversold market condition is building.

Crude Oil: The overnight WTI market was down $1.00 near $64.75. The spot-month contract is in a short-term downtrend, testing 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. Resistance is found at the $65.45, $66.33 and $67.19 retracement points. WTI is in backwardation, a bullish market structure, with the calendar spreads narrowing. The relative strength index shows modest oversold market pressure.

Distillates: The overnight market was down 2.0cts near $2.0865. The spot-month contract moved into a short-term downtrend this week. The spot-month contract is testing support at this week’s $2.0658 four-week low, with additional support marked at $2.0577 and $1.9988, the 50% and 61.8% retracement points to the February-to-May uptrend. Resistance is found at the $2.1165 38.2% retracement point for the same uptrend. The forward curve is in seasonal contango through end-year delivery. The relative strength index shows an oversold market condition.

RBOB Gasoline: The overnight market was down 1.0cts near $2.0125. The spot-month contract is in a short-term downtrend, trading at a $1.9975 10-week low. The spot-month contract is testing support 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.

Natural Gas: The overnight market was up 3.1cts at $2.995. The spot-month contract confirmed a short-term uptrend this week after trading at a $3.053 four-week high. Support is marked at the $2.88 retracement point for the February-to-May uptrend Tuesday. The front end of the forward curve remains 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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