DTN’s Technical Analysis | ENERGY | May 22

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

Darin Newsom - DTN Senior Analyst,
May 22, 2018

Brent Crude Oil: The overnight market (ICE) was $0.37 higher at $79.59. While the spot-month contract continues to give signals of a possible short-term bearish change in trend, the market’s bullish inverted forward curve continues to provide fundamental support. This allows the market’s major (long-term) uptrend to override minor (short-term) and secondary (intermediate-term) technical signals.

Crude Oil: The overnight WTI market was $0.23 higher at $72.47. Similar to Brent crude, WTI’s major (long-term) uptrend once again trumped the market’s minor (short-term) bearish signals. The spot-month contract posted a new high for this move of $72.72 overnight, above major resistance on the market’s monthly chart at $72.36.

Distillates: The overnight market was 0.31ct higher at $2.2769. Distillates still look to be rolling over into a minor (short-term) downtrend with the spot-month contract holding below its recent high of $2.3069. Daily stochastics established another bearish crossover above the overbought level of 80% last week. However, fundamental support could continue to come from the market’s inverted forward curve.

RBOB Gasoline: The overnight market was 0.25ct higher at $2.2590. The spot-month RBOB contract continues to hold below its 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 2.3cts higher at $2.833. Natural gas remains in position to establish bearish minor (short-term) signals as the spot-month contract holds below its recent high of $2.870.

*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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