DTN’s Technical Analysis | ENERGY | May 1

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

Darin Newsom - DTN Senior Analyst,
May 1, 2018

Brent Crude Oil: The overnight market on ICE was $0.50 lower near $74.10. The spot-month contract continues to consolidate below its recent high of $75.47, while giving indications of rolling over into a minor (short-term) downtrend. The most recent signal by daily stochastics remains a bearish crossover above the overbought level of 80%. If the market starts to fall, initial support is at $72.23. This price marks the 23.6% retracement level of the previous uptrend from $61.76 through the $75.47 high.

Crude Oil: The overnight WTI market was $0.75 lower near $67.90. As with Brent crude, WTI looks poised to roll over into a minor (short-term) downtrend. If so initial support is pegged at $66.85, a pegged at $66.85, a price that marks the 23.6% retracement level of the previous uptrend from $58.07 through the recent high of $69.56.

Distillates: The overnight market was 1.75cts lower near $2.1315. The expiration of one contract at the end of the month and roll to the next spot-month contract often skews daily charts for both distillates and RBOB. In the case of distillates, the May issue posted a new high of $2.1918 before expiring, leaving the now spot June in position to begin a minor (short-term) downtrend. If so, initial support is pegged at $2.1013.

RBOB Gasoline: The overnight market was 2.25cts lower near $2.1080. Similar to distillates, the May RBOB contract posted a new high of $2.1476 before expiring Monday. Otherwise the market’s daily chart looks the same as before, with the recent bearish crossover by daily stochastics above the overbought level of 80% setting the stage for a minor (short-term) downtrend.

Natural Gas: The overnight market was 4.1cts higher at $2.804. For now, the market remains in a minor (short-term) uptrend. Initial support is at Monday’s low of $2.728 with resistance at last Thursday’s high of $2.839.

*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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