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.

About the Author
Kris Hicks

KMH is a trading and technical analysis firm that specializes in commodity futures and commodity based ETF’s. Kris Hicks has worked for numerous years in the commodity business and in 2011 accurately forecasted both $25 moves to the downside in May and July and the $25+ move to the upside in October in oil. He also called the all-time high day for gold on Sept. 6, 2011 and forecasted a projected downside target of 1528.10 in March 2012. He was also responsible for projecting the Q2 and Q4 low in the Euro FX to within 13 and 9 ticks, respectively. His trading methodology has a high degree of accuracy which confirms tops/bottoms, projected trading ranges and projected targets for those ranges. His expertise is focused on 16 commodities plus the comparable ETF markets. You can reach Kris at Kris@KMH-Capital.com or visit his website at www.KMH-Capital.com.

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