DTN’s Technical Analysis | ENERGY | Nov 7

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

Brian Milne - DTN Energy Editor,
November 7, 2018

Brent Crude Oil: The overnight market on ICE was up $1.00 near $73.10. The spot-month contract tested support at the $71.30 61.8% retracement point for the February-to-October uptrend, trading at a $71.18 11-week low Tuesday. Support is again found at the $70.30 August low. The spot-month contract remains below the 200-day moving average at $74.03. The forward curve shows a modest contango through the first half of 2019. The relative strength index shows an oversold market.

Crude Oil: The overnight WTI market was up $0.55 near $62.75. The spot-month contract tested support at the $61.81 April low, trading at a $61.31 seven-month low Tuesday. Support is again found at the $58.07 low for February. The spot-month contract continues to trade below the 200-day moving average at $67.45. The forward curve is in a contango market structure through July 2019. The relative strength index shows an oversold market.

Distillates: The overnight market was up 3.9cts near $2.2275. The spot-month contract is rallying off Monday’s $2.1563 nearly 2-1/2 month low. Support is found at the $2.1357 200-day moving average and at the $2.1292 50% retracement point for the February-to-October uptrend. The forward curve is in seasonal backwardation. The relative strength index shows oversold pressure is building.

RBOB Gasoline: The overnight market was little changed at $1.6950. The spot-month contract traded at a $1.6610 fresh 8-1/2 month low Tuesday, testing support at the 2018 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 1.3cts at $3.542. While down, the spot-month contract is in a short-term uptrend, trading at a $3.581 nine-month high Tuesday. Resistance is found at the $3.661 2018 high. Traders will look to fill the 12.4cts gap on the spot continuous chart down to $3.437. 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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