Oil remains choppy as direction hard to discern

Daily Market Analysis 01/24/12

Key Terms:
OVB = Outside Bar
VRCB = Volatility Reduced Compression Bar
Primary Trend = Trend based on a range confirmation
Secondary Trend = Trend based on a close violation
RBB = Resistance Bollinger Band
SBB = Support Bollinger Band

Energies

CLH12:

  • Primary and Secondary Trends are bearish.
  • New 2012 lows made today @ 97.40. Downside Target over 107% achieved.
    • March Crude was crushed to begin the session last night but roared back above $100 today and generated a “Parrish Hicks Proprietary Buy Signal” entry on the close.
    • This market has been very choppy for the past 2 months, which could be either an indication that it may soon roll-over or is just building a base for another move toward $115?
  • Projected Daily Range: 2.62
  • Projected Weekly Range: 4.65
  • Projected Monthly Range: 14.61
    • Has currently traded 6.50

NGH12:

  • Primary and Secondary Trends are bearish.
  • Bullish EROVB (Extended Range Vertical Bar) generate today.
    • Nat Gas EXPLODED higher today on news of Chesapeake cutting back production levels and laying down some of its rigs.
    • While this move could/should be looked at as a knee jerk reaction to news in a market that has been obliterated over the last 6 months, some type of follow through may set up for a possible long term bottom as the revised Q1 downside target came within 12 cents of being achieved.
  • Projected Daily Range: .151
  • Projected Weekly Range: .320
    • Traded .388 today
  • Projected Monthly Range: .640
    • Has currently traded .864

Parrish Hicks Capital Research does technical research on commodity markets. Contact them at Jim@ParrishHicks.com or Kris@ParrishHicks.com.

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