DTN’s Technical Analysis | ENERGY | May 21

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

Darin Newsom - DTN Senior Anlayst,
May 21, 2018

Brent Crude Oil: The overnight market (ICE) was $0.08 lower at $78.59. Technically the market looks to be rolling over into a minor (short-term) downtrend as the spot-month contract continues to pull back from the recent high of $80.50. Daily stochastics have established another bearish crossover above the overbought level of 80%, signaling a changing trend. However, support continues to come from the market’s inverted forward curve.

Crude Oil: The overnight WTI market was $0.20 higher at $71.48. Similar to Brent crude, WTI is showing a possible move to a minor (short-term) downtrend on its daily chart. The spot-month contract is consolidating below its recent high of $72.30 as daily stochastics establish another bearish crossover above the overbought level of 80%. If the market is now in a downtrend, initial support is at $68.94, the 23.6% retracement level of the previous uptrend from $58.07.

Distillates: The overnight market was 0.17ct higher at $2.2876. Similar to the oil markets, distillates look to be rolling over into a minor (short-term) downtrend. The spot-month contract has pulled back slightly from its recent high of $2.3069 while daily stochastics established another bearish crossover above the overbought level of 80%. However, fundamental support could continue to come from the market’s inverted forward curve.

RBOB Gasoline: The overnight market was 0.44ct higher at $2.2377. The same pattern discussed in the oils and distillates is also evident in RBOB gasoline, with the slide from the recent high of $2.2773 indicating a possible move to a minor (short-term) downtrend. If so, initial support is pegged at $2.1297, the 23.6% retracement level of the previous uptrend from $1.6519.

Natural Gas: The overnight market was 2.0cts lower at $2.827. Natural gas is in position to establish bearish minor (short-term) signals as Monday morning’s lower trade puts daily stochastics near a bearish crossover above 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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