DTN’s Technical Analysis | ENERGY | Oct 25

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

Brian Milne - DTN Energy Editor,
October 25, 2018

Brent Crude Oil: The overnight market on ICE was up $0.50 near $76.65. The spot-month contract continues to trade below previous support at the $77.20 38.2% retracement point for the February-to-October uptrend, trading at a $75.11 two-month low Wednesday. Support is marked at the $74.25 50% retracement point for the same trend. The front end of the forward curve has moved out of a bullish backwardated market structure. The relative strength index shows building oversold market pressure.

Crude Oil: The overnight WTI market was up $0.25 near $67.05. The spot-month contract continues to trade below previous support at the $67.42 200-day moving average, trading at a $65.74 two-month low Tuesday. Support is found at the $64.43 August low. The forward curve is in a contango market structure through May 2019. The relative strength index shows an oversold market.

Distillates: The overnight market was up 1.0cts near $2.2625. The spot-month contract is again trading above support at the $2.2458 50% retracement point for the July-to-October uptrend after trading at a $2.2305 four-week low Wednesday. Support is again found at the $2.1977 61.8% retracement point for the same trend. The November and December contracts are trading near parity with January holding a modest premium when the forward curve moves into seasonal backwardation. The relative strength index shows a neutral market.

RBOB Gasoline: The overnight market was up 0.5cts near $1.8275 after trading at a fresh eight-month low of $1.7957. The spot-month contract moved below long-term support at $1.8141, with support now found at $1.7587. The front end of the forward curve is flat. The relative strength index shows oversold pressure.

Natural Gas: The overnight market was up 2.2cts at $3.188. The spot-month contract continues to trade between support at the $3.095 50% retracement point for the January-to-February downtrend and resistance at the $3.229 61.8% retracement point for the same trend. The November through January calendar spreads are in seasonal contango. The relative strength index shows a neutral market.

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