DTN’s Technical Analysis | ENERGY | Nov 14

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

Brian Milne - DTN Energy Editor,
November 14, 2018

Brent Crude Oil: The overnight market on ICE was up $0.55 near $66.00, consolidating above Tuesday’s plunge to a $64.61 eight-month low. The spot-month contract is trading just above support at $65.54, the 50% retracement point for the long-term uptrend from the June 2017 low to the October high, with support again found at the $60.54 61.8% retracement point. The forward curve is in a contango market structure through July 2019. The relative strength index shows an oversold market.

Crude Oil: The overnight WTI market was up $0.35 near $56.00, consolidating above Tuesday’s $54.75 one-year low. The spot-month contract is again above support at $55.36, the 61.8% retracement point for the uptrend from the June 2017 low to October high. Support is again found at the $50.88 extension point for the February to October uptrend. The forward curve is in a contango market structure through the first half of 2019. The relative strength index shows an oversold market.

Distillates: The overnight market was up 2.75cts near $2.0900, reversing from a $2.0503 four-month low. The spot-month contract moved above support at the $2.0535 61.8% retracement point for the February-to-October uptrend. The forward curve is in seasonal backwardation. The relative strength index shows oversold pressure continues to build.

RBOB Gasoline: The overnight market was up 0.25cts near $1.5450 after trading at a $1.5240 16-month low on Tuesday. The spot-month contract has long-term support at the $1.4277 61.8% retracement point for the uptrend from the 2016 low to the 2018 high. The forward curve moves into contango in 2019 through June delivery. The relative strength index shows ongoing oversold pressure.

Natural Gas: Natural gas spiked to a $4.929 four-year, eight-month high overnight, paring the advance to about 50.0cts near $4.600. The spot-month contract targeted the $5.095 Fibonacci extension point for the December 2017 to January uptrend with the spike high. The contract is again below $4.628 retracement resistance on the weekly chart for the downtrend from the 2014 high to the 2016 low. The forward curve is transitioning into seasonal backwardation. The relative strength index shows an overbought market.

*For technical analysis of monthly (long-term) and weekly (intermediate-term) trends see DTN’s Technically Speaking blog on your ProphetX system.

Click here for more information onDTN ProphetX®, or here for a free trial of DTN ProphetX® Energy Edition.

**For additional energy education check out our training courses here.