DTN’s Technical Analysis | ENERGY | May 16

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

Darin Newsom - DTN Senior Analyst,
May 16, 2018

Brent Crude Oil: The overnight market on ICE was $0.50 lower near $77.95. The spot-month contract extended the market’s uptrends (minor, secondary, and major) as it posted a new high of $79.47 Tuesday. The subsequent setback still has the market above major (long-term) resistance at $77.75 on the monthly chart, a price that marks the 50% retracement level of the previous major downtrend from $128.40 through the low of $27.10. Fundamental support continues to come from the market’s inverted forward curve.

Crude Oil: The overnight WTI market was $0.25 lower near $71.15. The spot-month contract continues to hold below next major (long-term) resistance on the market’s monthly chart at $72.36, a price that marks the 38.2% retracement level of the previous downtrend from $147.27 through the low of $26.05. The market is consolidating at this point, showing a possible minor (short-term) double-top near $71.90. This puts initial support at Monday’s low of $70.26.

Distillates: The overnight market was 1.0cts lower near $2.2385. The spot-month contract has fallen back from Tuesday’s new high of $2.2721, with the day’s fractionally lower close looking to be a potential spike reversal. Daily stochastics are above the overbought level of 80%, in position for potentially another bearish crossover that would signal the market is set to move into a minor (short-term) downtrend. If so, initial support is pegged at $2.1627.

RBOB Gasoline: The overnight market was slightly lower near $2.2030. The spot-month RBOB contract extended the market’s uptrends Tuesday by posting a new high of $2.2226. The spot-month contract has cleared major resistance on the market’s long-term monthly chart at $2.1882, with the next target up at $2.4928.

Natural Gas: The overnight market was 0.5cts lower at $2.831. The spot-month contract posted a new four-day high of $2.864 Tuesday, maintaining the markets minor (short-term) uptrend. Resistance on the market’s weekly chart is at $2.869. Daily stochastics are nearing the overbought level of 80%.

*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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