Oil confirms top, downside targeted

Daily Market Analysis 01/31/12

KEY TERMS
OVB Outside Vertical Bar
VRCB Volatility Reduced Compression Bar
STT 1 Trend Based on a Range Violation
STT 2 Trend Based on a Close Violation
RBB Resistance Bollinger Band
SBB Support Bollinger Band

Energies

CLH12:

  • Trends are bearish.
  • STT1 had a confirmation of a top @ 99.12. Downside Target 96.64.
    • March Crude started this week out heading lower as the fact that it failed to close above the $100 threshold during an entire week for the first time since November may have been processed by many of the crude traders.
    • The sideways action in this market is bound to run out soon and with the heavy selling above 101-102, this market looks ready to make its first serious attempt at $95.
  • Projected Daily Range: 1.76
  • Projected Weekly Range: 4.62
  • Projected Monthly Range: 14.61

NGH12:

  • Trends are bearish.
  • New high made today on current move @ 2.844. Upside Target over 250% achieved.
    • Nat Gas began the day strong but had the wind taken out of its sails just after noon, losing over 10 cents during the last half of the day.
    • Having said that this rally should be sold heavily multiple times, this looks like the point where the market goes after our 2012 Q1 2.161 objective listed a few weeks back.
  • Projected Daily Range: .211
  • Projected Weekly Range: .440
  • Projected Monthly Range: .640

Parrish Hicks Capital Research is a trading technical analysis firm that specializes in WTI. The two founders, Jim Parrish and Kris Hicks, have a combined 38 years experience in the commodity business and in 2011 accurately called both $25 moves to the downside in May and July and the $25 move to the upside in October. Their trading methodology confirms tops/bottoms, projected trading ranges and projected targets for those ranges. Although their expertise is focused on WTI, they also provide technical analysis on 16 commodity markets including the energies, metals, equity index, currencies, grains, meats, soft’s and interest rates. You can reach them at Jim@ParrishHicks.com and 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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