DTN’s Technical Analysis | ENERGY | Oct 19

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

Brian Milne - DTN Energy Editor,
October 19, 2018

Brent Crude Oil: The overnight market on ICE was up $0.75 near $80.00. The spot-month contract tested support at the $78.52 50% retracement point for the August-to-October uptrend Thursday, trading at a four-week low at $78.69. Support is again found at the $77.20 38.2% retracement point for the February-to-October uptrend. Resistance is found at the $82.86 23.6% retracement point for the August-to-October uptrend. 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 $69.15. The spot-month contract moved into a short-term downtrend this week, trading at a $68.47 five-week low Thursday. The spot-month contract is again testing support at the support at $69.19 61.8% retracement point for the August-to-October uptrend. Support is then found at the $67.32 200-day moving average. Retracement resistance is marked at $70.67 and $72.14. The forward curve through the first half of 2019 is flat, with WTI futures moving out of a backwardated market structure this week. The relative strength index shows a neutral market.

Distillates: The overnight market was 1.85cts higher near $2.3135. The spot-month contract moved below support at the $2.2940 38.2% retracement point for the July-to-October uptrend Thursday, trading at a near four-week low at $2.2836. Support is found at the $2.2458 50% retracement point. Resistance is marked at the $2.3536 retracement point. 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 3.0cts near $1.9225. The spot-month contract tested support at the $1.8939 61.8% retracement point for the February-to-May uptrend, trading at a seven-month low of $1.8803 Thursday. Resistance is marked at the $1.9687 50% retracement point for the same trend. The front end of the forward curve is flat. The relative strength index shows oversold pressure.

Natural Gas: The overnight market was down 3.5cts at $3.163. The spot-month contract moved below support at the $3.229 retracement point for the January-to-February downtrend, with support again found at the $3.095 50% retracement point for the same trend. Resistance is found at the $3.368 October high and at the $3.38 61.8% extension point for the February-to-June uptrend. The November through January calendar spreads are in seasonal contango. The relative strength index shows a neutral market.

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