DTN’s Technical Analysis | ENERGY | May 24

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

Darin Newsom - DTN Senior Analyst,
May 24, 2018

Brent Crude Oil: The overnight market on ICE was $1.00 lower near $78.85. The spot-month contract continues to consolidate below the recent high of $80.50, unable to follow-through on minor (short-term) bearish signals due to bullish fundamentals implied by the market’s inverted forward curve. Minor support is at the four-day low of $78.10.

Crude Oil: The overnight WTI market was $0.75 lower near $71.00. Once again the market looks to be rolling into a minor (short-term) downtrend as the spot-month contract continues to fall back from its recent high of $72.83. Initial support is at the four-day low of $70.99.

Distillates: The overnight market was 1.5cts lower near $2.2735. Similar to Brent crude, the spot-month distillates contract continues to consolidate below its recent high of $2.3069 while holding above support at its four-day low of $2.2526. A breakout in either direction would set the next minor (short-term) trend.

RBOB Gasoline: The overnight market was 2.0cts lower near $2.2410. The spot-month contract is holding below its 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 0.7cts lower at $2.907. The spot-month contract maintained the market’s minor (short-term) uptrend by posting a new high of $2.939 Wednesday. Nest 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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