DTN’s Technical Analysis | ENERGY | Oct 31

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

Brian Milne - DTN Energy Editor,
October 31, 2018

Brent Crude Oil: The overnight market on ICE was up $0.25 near $76.15 ahead of the December contract’s expiration this afternoon. The spot-month contract set a new low for October on Tuesday at $75.09, with support at the $74.25 50% retracement point for the February-to-October uptrend holding. December delivery is trading at a discount to January ahead of today’s expiration, with the forward curve flat through April 2019. The relative strength index shows oversold pressure.

Crude Oil: The overnight WTI market was up $0.25 near $66.40. The spot-month contract is holding below previous support at the $67.48 200-day moving average, trading at a $65.33 new low for October on Tuesday. Support is found at the $64.43 August low. The forward curve is in a contango market structure through the first half of 2019. The relative strength index shows an oversold market.

Distillates: The overnight market was up 2.25cts near $2.2825 ahead of the November contract’s expiration this afternoon. The spot-month contract has resistance at the $2.2940 38.2% retracement point for the July-to-October uptrend. After October’s $2.2305 low, support is found at the $2.1977 61.8% retracement point for the recent uptrend. The November and December contracts are at parity, with the forward curve then in seasonal backwardation. The relative strength index shows a neutral market.

RBOB Gasoline: The overnight market was up 1.25cts near $1.8185. The spot-month contract is in a short-term downtrend, trading at an eight-month low of $1.7670 in October. 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 up 4.4cts at $3.231. The spot-month contract moved through resistance at the $3.229 61.8% retracement point for the January-to-February downtrend. Resistance is again found at $3.318. The December contract is trading at a discount to January delivery, with the forward curve then moving into seasonal backwardation. The relative strength index shows a neutral market.

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