DTN’s Technical Analysis | ENERGY | May 17

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

Darin Newsom - DTN Senior Analyst,
May 17, 2018

Brent Crude Oil: The overnight market on ICE was $0.75 higher near $79.95. The spot-month contract extended the market’s uptrends (minor, secondary, and major) again as it posted a new high of $80.18 overnight. This is the first move into the $80 area since November 2014. Next major (long-term) resistance is at $89.70 on the monthly chart, a price that marks the 61.8% 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 $0.65 higher near $72.15. The spot-month contract extended the market’s uptrends (minor, secondary, major) as it posted a new high of $72.30 overnight. This is a test of 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.

Distillates: The overnight market was 2.25cts higher near $2.2915. Similar to the oil markets, the spot-month distillates contract posted a new high of $2.2934 overnight. Next major (long-term) resistance on the market’s monthly chart is at $2.4069, a price that marks the 61.8% retracement level of the previous major downtrend from $3.37 through the low of $0.8487.

RBOB Gasoline: The overnight market was 1.25cts higher near $2.2615. The spot-month RBOB contract extended the market’s uptrends by posting a new high of $2.2664 overnight. 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 0.3cts lower at $2.812. The spot-month contract continues to fall back from its new high of $2.864 posted Tuesday. This was also a test of resistance on the market’s weekly chart 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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