DTN’s Technical Analysis | ENERGY | Sep 4
September 4, 2018
Brent Crude Oil: The overnight market on ICE was up $1.25 near $79.25. The spot-month contract has rallied through the July and June highs of $79.51 and $79.70, respectively, trading at a $79.72 better-than three-month high. Resistance is now found at the $80.50 May high. Support is found at the $75.39 100-day moving average. The forward curve is now in backwardation after last week’s expiration by the October contract, a bullish market structure. The calendar spreads are widening. The relative strength index shows overbought pressure is building.
Crude Oil: The overnight WTI market was up $1.35 near $71.15. The spot-month contract moved through resistance at $70.81, with retracement resistance now marked at $72.51. Support is found at the $68.82 100-day moving average. WTI is in a bullish backwardated market structure. The relative strength index shows a neutral market.
Distillates: The overnight market was up 5.75cts near $2.3010 during its first session with the October contract as nearest delivery. The spot-month contract has moved through resistance at the $2.3069 May high overnight, trading at a $2.3093 3-1/2 year high. Resistance is found at $2.3514, the February 2015 high on the spot continuation chart. Retracement support is found at $2.1961 and $2.1893. The front end of the forward curve is in a flattening contango market structure through year-end delivery, moving into backwardation for the first half of 2019. The relative strength index shows overbought market pressure is building.
RBOB Gasoline: The overnight market was up 5.75cts near $2.0535. RBOB futures gapped down 4.52cts on the spot continuation chart as the October contract takes over as nearest to delivery with Friday’s expiration of the September contract. The spot-month contract has retracement resistance at $2.0789 and $2.1052. Support is found at the $1.9671 August low. The gasoline market is in seasonal backwardation through January delivery. The relative strength index shows a neutral market.
Natural Gas: The overnight market was down 6.0cts at $2.856. The spot-month contract moved below support at the $2.837 38.2% retracement point for the June-to-July downtrend, trading at a $2.818 four-week low. Support is again found at $2.786. The forward curve is in a contango market structure through January delivery. The relative strength index shows a neutral market.
*For technical analysis of monthly (long-term) and weekly (intermediate-term) trends see DTN’s Technically Speaking blog on your ProphetX system.