DTN’s Technical Analysis | ENERGY | Oct 12

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

Brian Milne - DTN Energy Editor,
October 12, 2018

Brent Crude Oil: The overnight market on ICE was up $0.35 near $80.60. The spot-month contract is testing support at the $80.84 retracement point for the February-to-October uptrend, trading at a $79.80 three-week low Thursday. Support is again marked at the $77.20 38.2% retracement point for the same downtrend. The forward curve is in a bullish backwardated market structure. The relative strength index shows a neutral market.

Crude Oil: The overnight WTI market was up $0.50 near $71.55, holding above Thursday’s $70.51 three-week low. The spot-month contract has support at the $69.41 100-day moving average. Resistance is marked at the $74.88 50% retracement point for the downtrend from the 2014 high to the 2015 low, and this month’s $76.90 four-year high. The forward curve is in a bullish backwardated market structure. The relative strength index shows a neutral market.

Distillates: The overnight market was up 0.25cts near $2.3335. The spot-month contract has support at $2.3069, with resistance at the $2.4206 23.6% Fibonacci extension point for the February-to-May uptrend. The seasonal contango at the front end of the forward curve remains tight. The relative strength index shows a neutral market.

RBOB Gasoline: The overnight market was up 1.9cts near $1.9515. The spot-month contract is in a short-term downtrend, trading at a seven-month low at $1.9236 Thursday. The spot-month contract is testing support at the $1.9260 September low. The front end of the forward curve is close to transitioning into a contango market structure. The relative strength index shows a neutral market.

Natural Gas: The overnight market was up 0.4cts at $3.226. The spot-month contract continues a retreat after testing resistance this week at the $3.38 61.8% extension point for the February-to-June uptrend, trading at a more than eight-month high at $3.368 this week. The spot-month contract continues to test support at the $3.229 retracement point. The November through January calendar spreads are in seasonal contango. The relative strength index shows modest overbought pressure.

*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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