DTN’s Technical Analysis | ENERGY | Jun 28

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

Brian Milne - DTN Energy Editor,
June 28, 2018

Brent Crude Oil: The overnight market on ICE was trading just above $78.00, up almost $0.50, ahead of the September contract’s expiration Friday afternoon. The spot-month contract is in a short-term uptrend, trading at a $78.18 four-week high overnight after moving through retracement resistance for the April-to-May uptrend at $77.24. Resistance is then marked at the May high at $80.50. Brent is in backwardation, a bullish market structure, with the calendar spreads widening. The relative strength index shows a neutral market condition.

Crude Oil: The overnight WTI market was flat near $72.75 amid inside trade, holding below Wednesday’s multiyear high at $73.06. The spot-month contract is in a short-term uptrend, moving through scattered retracement points from $72.00 through the May high at $72.83. Resistance is found from $76.38 through $76.53. WTI is in backwardation, a bullish market structure, with the calendar spreads widening sharply. The relative strength index shows a neutral market condition.

Distillates: The overnight market was up almost 1.0cts near $2.1850 ahead of the July contract’s expiration at Friday’s close. The spot-month contract is in a short-term uptrend, trading at a $2.1920 four-week high overnight. The spot-month contract is testing resistance at the $2.1893 23.6% retracement point for the February-to-May uptrend. The forward curve is in seasonal contango through mid-winter delivery. The relative strength index shows a neutral market condition.

RBOB Gasoline: The overnight market was 0.5cts higher near $2.1375 ahead of the July contract’s expiration at Friday’s close. The spot month contract is testing resistance at $2.1334, the 23.6% retracement point for the February-to-May uptrend, trading at a nearly four-week high at $2.1414. 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 was down 0.9cts at $2.972 amid inside trade as the August contract takes position as nearest to delivery. The spot month contract is in a short-term uptrend, with resistance marked at the recent $3.053 four-week high. The spot-month contract has support at the $2.88 retracement point for the February-to-May uptrend, which coincides with the 200-day moving average at $2.875. The August contract is trading at a premium to September delivery, with fourth quarter contracts flipping into 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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