DTN’s Technical Analysis | ENERGY | Oct 8

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

Brian Milne - DTN Energy Editor,
October 8, 2018

Brent Crude Oil: The overnight market on ICE was down $1.15 to $83, trading near an $82.66 one-week low. The spot-month contract continues to backpedal from last week’s $86.74 four-year high, with support found at $81.86 and $80.50. The forward curve is in a bullish backwardated market structure. The relative strength index shows an overbought market.

Crude Oil: The overnight WTI market was down $1 near $73.40, edging off a $73.16 one-week low. The spot-month contract is continuing a retreat from last week’s nearly four-year high at $76.90. Support is found at the $69.37 100-day moving average. The forward curve is in a bullish backwardated market structure. The relative strength index shows an overbought market.

Distillates: The overnight market was down 2.10cts near $2.3710, moving off a $2.3586 one-week low. The spot-month contract reversed from last week’s nearly four-year high at $2.45, with support found at $2.3069. The November contract is trading at a 40 points discount to December delivery, with the December contract at a 35 points discount to the January contract. The relative strength index shows an overbought market.

RBOB Gasoline: The overnight market was down 3.0cts near $2.0560, moving off a $2.0484 two-week low. The spot-month contract moved through support at the $2.0827 100-day moving average. Support is found at the $2.0248 and $2.0100 Fibonacci retracement points. The November contract is trading at a 40 points premium to December delivery, with December and January contracts at parity. The relative strength index shows easing overbought pressure.

Natural Gas: The overnight market was up 7.5cts at $3.218. The spot-month contract continues to consolidate below last week’s $3.261 eight-month high. A move through the high sets up a test of resistance at the $3.229 61.8% Fibonacci retracement point for the February-to-June uptrend. The November through January calendar spreads are in seasonal contango. The relative strength index shows an overbought market.

*For technical analysis of monthly (long-term) and weekly (intermediate-term) trends see DTN’s Technically Speaking blog on your ProphetX system.

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