DTN’s Technical Analysis | ENERGY | Sep 5

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

Brian Milne - DTN Energy Editor,
September 5, 2018

Brent Crude Oil: The overnight market on ICE was down $0.75 near $77.40. The spot-month contract tested resistance at the June high of $79.70 Tuesday, trading at a $79.72 better-than three-month high. Resistance is again found at the $80.50 May high. Support is marked at the $75.42 100-day moving average. The forward curve is in backwardation, a bullish market structure, although the calendar spreads are narrowing. The short-term trend is up. The relative strength index shows modest overbought pressure.

Crude Oil: The overnight WTI market was down $0.85 near $69. The spot-month contract is in a short-term uptrend, trading at a $71.40 better-than seven-week high Tuesday. Resistance remains at the $70.81 and $72.51 retracement points for the June-to-July uptrend. Support is found at the $68.82 100-day moving average. WTI is in a bullish backwardated market structure, although the calendar spreads are narrowing. The relative strength index shows a neutral market.

Distillates: The overnight market was down 1.25cts near $2.2415. The spot-month contract tested resistance at the $2.3069 May high Tuesday, trading at a $2.3093 3-1/2 year high. Resistance is again 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 tightening contango market structure through January delivery. The relative strength index shows overbought market pressure is building.

RBOB Gasoline: The overnight market was down 1.5cts near $1.9775. The spot-month contract is testing support at the $1.9707 200-day moving average, trading at a $1.9718 three-week low overnight. Support is also found at the $1.9671 August low. 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 0.3cts at $2.826, reversing off a $2.807 five-week low. The spot-month contract is in a short-term downtrend, with support marked at the 23.6% retracement point for the June-to-July downtrend 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.

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