DTN’s Technical Analysis | ENERGY | Nov 21

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

Darin Newsom - DTN Senior Analyst,
November 21, 2017

OMAHA (DTN) — Brent Crude Oil The overnight market on ICE was slightly lower near $62.15. The market remains in a minor (short-term) downtrend on its daily chart. Initial support is at $59.86, a price that marks the 23.6% retracement level of the previous minor uptrend from $44.35 through the high of $64.65 posted on Nov. 7. The 38.2% retracement level is down at $56.90. Daily stochastics are bearish following a series of crossovers above the overbought level of 80%, the latest occurring on Nov. 7.

Crude Oil The overnight WTI market was slightly lower near $56.35. The market remains in a minor (short-term) downtrend on its daily chart. Initial support is at $54.17, a price that marks the 23.6% retracement level of the previous minor uptrend from $42.05 through the high of $57.92 posted on Nov. 8. This high was part of a bearish reversal by the spot-month contract, a pattern that also led to a bearish crossover by daily stochastics above the overbought level of 80%. The 38.2% retracement level is down at $51.86.

Distillates The overnight market was 0.75cts lower near $1.9250. The market’s minor (short-term) trend still looks to be down with last Friday’s high of $1.9545 establishing a double-top on the daily chart. Initial support is at the interim low of $1.8824, with a move below this indicating a 23.6% retracement back to $1.8142 is likely. Daily stochastics remain bearish following a series of crossovers above the overbought level of 80%.

RBOB Gasoline The overnight market was 0.25cts higher near $1.7450. The market’s minor (short-term) trend is down on its daily chart with the spot-month contract holding above support at $1.7242. This price marks the 38.2% retracement level of the previous minor uptrend from $1.5366 through the high of $1.8402 posted on Nov. 8. With daily stochastics still above the oversold level of 20%, the minor downtrend could extend to the 50% retracement level of $1.6884.

Natural Gas The overnight market was 1.3cts lower at $3.034. The market’s minor (short-term) trend is down on its daily chart with the spot-month contract below support at $3.037. This price marks the 38.2% retracement level of the previous minor uptrend from $2.723 through this past Monday’s high of $3.231. This high was part of a bearish reversal by the spot-month contract, a pattern that also led to a bearish crossover by daily stochastics above the overbought level of 80%. A large price gap was left during the previous uptrend between $2.998 and $3.051. Filling this gap would equate to a test of support at the 50% retracement level of $2.977.

Darin Newsom, 1.402.255.3679, darin.newsom@dtn.com, www.dtn.com. (c) 2017 DTN. All rights reserved.