DTN’s Technical Analysis | ENERGY | May 8

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

Darin Newsom - DTN Senior Analyst,
May 8, 2018

Brent Crude Oil: The overnight market (ICE) was $0.73 lower at $75.44. The spot-month contract posted a new high of $76.34 during Monday’s rally before falling back overnight into Tuesday morning. Given daily stochastics are once again in overbought territory, the market is vulnerable to a round of selling at any time. Initial support is now down at $72.90. However, the market’s bullish forward curve should continue to limit selling interest.

Crude Oil: The overnight WTI market was $0.93 lower at $69.80. Similar to Brent crude, the spot-month contract posted a new high of $70.84 during Monday’s rally before selling off overnight into Tuesday morning. The market could see an attempt to test initial support at $67.83, but bullish fundamentals indicated by its inverted forward curve should limit selling interest.

Distillates: The overnight market was 2.08cts lower at $2.1642. It could still be argued the market is in a minor (short-term) downtrend, with Monday’s high of $2.1871 a test of the previous peak at $2.1918. This could be considered a double-top, or the recent upswing looks to be Wave B (second wave) of a 3-wave downtrend.

RBOB Gasoline: The overnight market was 1.88cts lower at $2.1152. The market still looks to be in a minor (short-term) downtrend with the recent rally Wave B (second wave) of a 3-wave downtrend. Resistance remains at the previous high of $2.1476, with support at the low of $2.0529.

Natural Gas: The overnight market was 2.2cts higher at $2.762. It could be argued, for now at least, that natural gas maintains its minor (short-term) uptrend as the spot-month contract posted a bullish outside range Monday. This pulled the spot-month contract back above trendline support, calculated Tuesday at $2.718.

*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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