DTN’s Technical Analysis | ENERGY | Mar 1

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

Brian Milne - DTN Energy Editor,
March 1, 2018

Brent Crude Oil: The overnight market on ICE was down 65cts near $64.00, gapping down on the spot continuous chart as May delivery rolls into the spot-month position. The spot-month contract is trading near a two-week low, testing support at $64.00, the 23.6% retracement point for the selloff from the January high of $71.28 to the February low of $61.76. Additional support is at the February low and near $61.00. The market remains in a bullish backwardated market structure, although the calendar spreads have narrowed sharply this week with the April contract’s expiration. The relative strength index is neutral.

Crude Oil: The overnight WTI market was down 50cts near $61.25, trading near a $61.06 one-week low. The spot-month contract is testing support at the $61.34 38.2% retracement point for the January to February selloff from $66.66 to $58.07, with additional support at $60.74 and at the February low. The market remains in a bullish backwardated market structure. The relative strength index is neutral.

Distillates: The overnight market was down 1.5cts near $1.8875, as April delivery rolls into the front month slot following the expiration of the March contract Wednesday afternoon. The spot-month contract is trading near a two-week low at $1.8853, testing support at $1.8816, the 61.8% retracement point for the October to January uptrend from $1.72 to $2.1431. The April contract moved into contango against May delivery. The relative strength index is neutral.

RBOB Gasoline: The overnight market was down 1.0cts near $1.9140, with the April contract gapping higher on the spot continuous chart as it moves into the front month position, reflecting the seasonal uptrend for gasoline. The spot-month contract traded at a $1.9335 four-week high. Resistance is found at the $1.9530 January high. The forward curve moves into backwardation with May delivery. The relative strength index is neutral.

Natural Gas: The overnight market was down 1.9cts at $2.648. The spot-month contract continues to hold above long-term support at $2.521, with resistance at $2.803. The forward curve is in a bearish contango market structure. A break below support at $2.521 could spark a selloff to support at $2.173. The relative strength index is neutral.

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Brian Milne, www.dtn.com (c) 2017 DTN. All rights reserved.