DTN’s Technical Analysis | ENERGY | Sep 25

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

Brian Milne - DTN Energy Editor,
September 25, 2018

Brent Crude Oil: The overnight market on ICE was up $0.85 at $82.05, trading at an $82.20 nearly four-year high. The spot-month contract is testing resistance at the $81.86 61.8% retracement point for the downtrend from the June 2014 high-to-January 2016 low. Resistance is again marked at the $88.77 61.8% retracement point for the June 2014 high-to-January 2015 low. The forward curve is in a bullish backwardated market structure. The relative strength index shows modest overbought pressure is building.

Crude Oil: The overnight WTI market was up $0.45 near $72.50, holding below Monday’s $72.74 better-than 10-week high. The spot-month contract is in a short-term uptrend, testing resistance at the $72.51 23.6% retracement point for the June-to-July uptrend. Resistance is again found at the $75.27 July high. Support is found at the $69.07 100-day moving average, and last week’s $68.53 double bottom. The forward curve is in a bullish backwardated market structure. The relative strength index shows a neutral market.

Distillates: The overnight market was up 2.15cts at $2.3075. The spot-month contract is testing resistance at the recent 3-1/2 year high of $2.3093. Resistance is again found at the $2.3514 high from February 2015. The front end of the forward curve is in seasonal contango through February delivery. The relative strength index shows a neutral market.

RBOB Gasoline: The overnight market was up 1.0cts near $2.0655. The spot-month contract is again testing resistance at the $2.0633 38.2% retracement point for the May-to-September downtrend, trading at a nearly four-week high at $2.0690. Support is found at the $1.9890 200-day moving average. The gasoline market is in a flattening backwardated market structure through January delivery. The relative strength index shows a neutral market.

Natural Gas: The overnight market was up 1.4cts at $3.052. The spot-month contract moved above resistance at the $3.053 June high, trading at a $3.067 nearly eight-month high. The spot-month contract is in a short-term uptrend. October delivery moved into a premium against November delivery ahead of the October contract’s expiration Wednesday (9/26) afternoon, with the calendar spreads in seasonal contango through January delivery. The relative strength index shows modest overbought pressure is building.

*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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