DTN’s Technical Analysis | ENERGY | May 9

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

Darin Newsom - DTN Senior Analyst,
May 9, 2018

Brent Crude Oil: The overnight market (ICE) was $1.80 higher at $76.65. The spot-month contract posted a new high of $77.20 overnight before pulling back slightly. Next major (long-term) resistance remains at $77.75 on the market’s monthly chart, a price that marks the 50% retracement level of the previous major downtrend from $128.40 through the low of $27.10. Fundamental support continues to come from the market’s inverted forward curve.

Crude Oil: The overnight WTI market was $1.78 higher at $70.84. Similar to Brent crude, the spot-month contract posted a new high of $71.17 overnight into Wednesday morning. Next major (long-term) resistance on the market’s monthly chart is at $72.36, a price that marks the 38.2% retracement level of the previous downtrend from $147.27 through the low of $26.05.

Distillates: The overnight market was 5.28cts higher at $2.2105. The market erased minor (short-term) bearish signals as the spot-month contract extended its major (long-term) uptrend to a new high of $2.2182 overnight. Next major resistance on the market’s monthly chart is at $2.4069, a price that marks the 61.8% retracement level of the previous long-term downtrend from $3.37 through the low of $0.8487.

RBOB Gasoline: The overnight market was 4.56cts higher at $2.1570. Similar to distillates, the spot-month RBOB contract erased previous short-term bearish technical signals by extending the market’s major (long-term) uptrend to a new high of $2.1639 overnight. Next major resistance on the monthly chart is at $2.1882, a price that marks the 50% retracement level of the previous downtrend from $3.4789 through the low of $0.8975.

Natural Gas: The overnight market was 1.7cts higher at $2.749. It could be argued, for now at least, that natural gas maintains its minor (short-term) uptrend as the spot-month contract continues to hold above trendline support. This is calculated at $2.723 Wednesday.

*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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