DTN’s Technical Analysis | ENERGY | Oct 30

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

Brian Milne - DTN Energy Editor,
October 30, 2018

Brent Crude Oil: The overnight market on ICE was down $0.50 near $76.75 ahead of the December contract’s expiration Wednesday afternoon. The spot-month contract has support at this month’s $75.11 low, and again at the $74.25 50% retracement point for the February-to-October uptrend. The front end of the forward curve is flat through the first quarter 2019, with the market structure than in backwardation. The relative strength index shows oversold pressure.

Crude Oil: The overnight WTI market was down $0.50 near $66.60. The spot-month contract continues to trade below previous support at the $67.47 200-day moving average. Support is found at this month’s $65.74 low, and again 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 down 1.5cts near $2.2690. The spot-month contract is again trading above retracement support at $2.2458, with resistance marked at the $2.2940 38.2% retracement point for the July-to-October uptrend. After this month’s $2.2305 low, support is found at the $2.1977 61.8% retracement point for the recent uptrend. The November through January contracts are trading near parity ahead of the November contract’s expiration Wednesday afternoon, with the forward curve then in seasonal backwardation. The relative strength index shows a neutral market.

RBOB Gasoline: The overnight market was up 0.25cts near $1.8275. The spot-month contract is in a short-term downtrend, trading at an eight-month low of $1.7670 last week. Support is marked at $1.7587. The front end of the forward curve is flat ahead of the November contract’s expiration Wednesday afternoon. The relative strength index shows oversold pressure.

Natural Gas: The overnight market was down 1.0cts at $3.188. The spot-month contract bounced off of support at the $3.095 50% retracement point for the January-to-February downtrend. Resistance is found at the $3.229 61.8% retracement point for the same trend. The November through January calendar spreads are in contango. The relative strength index shows a neutral market.

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