DTN’s Technical Analysis | ENERGY | Oct 23

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

Brian Milne - DTN Energy Editor,
October 23, 2018

Brent Crude Oil: The overnight market on ICE was down $1.50 near $78.28, trading near a $77.87 five-week low. The spot-month contract is in a short-term downtrend, moving below support at the $78.52 50% retracement point for the August-to-October uptrend. Support is now found at the $77.20 38.2% retracement point for the February-to-October uptrend. The forward curve is in backwardation, although the calendar spreads are narrowing. The relative strength index shows a neutral market.

Crude Oil: The overnight WTI market was down $1.00 near $68.25, as the December contract moves into the nearest delivered position. The spot-month contract is in a short-term downtrend, decisively moving below retracement support at $69.19, trading at a better than five-week low of $67.93. Support is found at the $67.39 200-day moving average. The forward curve is in a modest contango market structure through the first half of 2019. The relative strength index shows oversold market pressure is building.

Distillates: The overnight market was 3.0cts lower near $2.2875. The spot-month contract has moved into a short-term downtrend, trading at a $2.2776 four-week low overnight. Support is found at the $2.2458 50% retracement point for the July-to-October 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 down 3.95cts near $1.8675, trading at a fresh seven-month low of $1.8585. Long-term support is found at $1.8141. The front end of the forward curve is flat. The relative strength index shows oversold pressure.

Natural Gas: The overnight market was up 1.4cts at $3.152. The spot-month contract has continued its retreat from the October high of $3.368. Support is found at the $3.095 50% retracement point for the January-to-February downtrend. The November through January calendar spreads are in seasonal contango. The relative strength index shows a neutral market.

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