DTN’s Technical Analysis | ENERGY | May 23

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

Darin Newsom - DTN Senior Analyst,
May 23, 2018

Brent Crude Oil: The overnight market on ICE was $0.60 lower near $78.95. 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. If the market breaks to a new four-day low below $78.10, initial support is at $76.08.

Crude Oil: The overnight WTI market was $0.50 lower near $71.75. The spot-month contract posted a new high for this move of $72.83 Tuesday before closing at $72.20. This remains a solid test of next major (long-term) resistance on the market’s monthly chart at $72.36. Short-term signals on the market’s daily chart continue to suggest a possible minor downtrend is coming, if the spot-month contract moves below the four-day low of 70.99.

Distillates: The overnight market was 1.0cts lower near $2.2715. 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. Initial support is at the four-day low of $2.2526.

RBOB Gasoline: The overnight market was 2.0cts lower near $2.2495. The spot-month contract fell back from its new high of $2.2855 posted Tuesday, again threatening a turn to a minor (short-term) downtrend. With daily stochastics indicating a sharply overbought situation the spot-month contract could look to test initial support at the four-day low of $2.2246. A move below that could lead to an extended selloff to test retracement support at $2.1360.

Natural Gas: The overnight market was 0.4cts lower at $2.904. The spot-month contract maintained the market’s minor (short-term) uptrend by posting a new high of $2.917 Tuesday. Next secondary (intermediate-term) resistance on the market’s weekly chart is at $3.084.

*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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