DTN’s Technical Analysis | ENERGY | Nov 2

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

Brian Milne - DTN Energy Editor,
November 2, 2018

Brent Crude Oil: The overnight market on ICE was slightly higher near $73.05. The spot-month contract settled below support at the $74.25 50% retracement point for the February-to-October uptrend, ending Thursday’s session at $72.89. Support is now found at the $71.30 61.8% retracement point and at the $70.30 August low. The forward curve is largely flat through the May 2019. The relative strength index shows an oversold market.

Crude Oil: The overnight WTI market was slightly lower near $63.60. The spot-month contract moved through support at the $64.43 August low, trading at $63.11 nearly seven-month low Thursday. Support is found at the $61.81 April low, and again at the $58.07 low for February. The forward curve is in a contango market structure through August 2019. The relative strength index shows an oversold market.

Distillates: The overnight market was down 1.0cts near $2.1900. The spot-month contract is testing support at the $2.1977 61.8% retracement point for the July-to-October uptrend, trading at a $2.1828 six-week low overnight. Support is again found at $2.1292, the 50% retracement point for the February-to-October uptrend. The forward curve is in seasonal backwardation. The relative strength index shows a neutral market.

RBOB Gasoline: The overnight market was up 0.9cts at $1.7255. The spot-month contract traded at a $1.6889 8-1/2 month low Thursday, in position to fully retrace the seasonal 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 down 4.5cts at $3.192. The spot-month contract is in retreat after testing resistance at the $3.368 October high, trading at $3.318 Thursday. 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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