DTN’s Technical Analysis | ENERGY | Nov 1

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

Brian Milne - DTN Energy Editor,
November 1, 2018

Brent Crude Oil: The overnight market on ICE gapped down $0.46 as the January contract assumes the front month position, trading $0.60 lower near $74.40. The spot-month contract is testing support at the $74.25 50% retracement point for the February-to-October uptrend, trading at a nearly 2-1/2 month low at $74.08. Support is again found at the $71.30 61.8% retracement point and at the $70.30 August low. The forward curve is largely flat through the first half of 2019. The relative strength index shows oversold pressure.

Crude Oil: The overnight WTI market was down $0.40 near $64.90. The spot-month contract is testing support at the $64.43 August low, trading at $64.65 overnight. The forward curve is in a contango market structure through May 2019. The relative strength index shows an oversold market.

Distillates: The overnight market was down 1.65cts near $2.2350, as the December contract rolls into the nearest delivered position. The spot-month contract is in a short-term downtrend, trading at a $2.2255 five-week low overnight. Support is found at the $2.1977 61.8% retracement point for the July-to-October uptrend. The forward curve is in seasonal backwardation. The relative strength index shows a neutral market.

RBOB Gasoline: The overnight market was down 3.4cts at $1.7480. The spot-month contract moved through support at $1.7587 as December delivery takes over as the spot-month contract, trading at a $1.7352 eight-month low overnight. RBOB futures are in position to fully retrace the uptrend from the February low of $1.6519. The forward curve is moving into contango. The relative strength index shows oversold pressure.

Natural Gas: The overnight market was up 2.5cts at $3.286. The spot-month contract has resistance at the $3.368 October high. The December contract is trading at a discount to January delivery, with the forward curve then moving into seasonal backwardation. The relative strength index shows a neutral market.

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