Oil pushed lower on poor US economic data

Daily Market Analysis 02/01/12

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.
  • Bearish EROVB (Extended Range Outside Vertical Bar) generated today making new lows on current move @ 97.86. Downside Target = 96.64 – 95.69
    • March Crude exploded higher in overnight trading, only to be abruptly demolished throughout the pit session as poor US economic data and a stronger dollar pushed the market lower.
    • A serious push lower towards $95 is still in the near future it seems and with a weekly close below 97.70, this market could set up for a move back below $90 to $86.63.
  • Projected Daily Range: 2.18
  • Projected Weekly Range: 4.62
  • Projected Monthly Range: 10.15
    • VRCB generated on the spot monthly chart

NGH12:

  • Trends are bearish.
  • C < LOHB. Possible STT 1 confirmation of a top with a range violation @ 2.452. Possible STT 2 confirmation of a top with a close @ 2.452 or lower.
    • Nat Gas generated a bearish daily close gap today on its way to a nearly 10% decline today as it soon approaches the first downside target at 2.377.
    • Next on the technical horizon is our revised Q1 downside target of 2.161 and with current market conditions, a push even farther may be possible.
  • Projected Daily Range: .206
  • Projected Weekly Range: .440
  • Projected Monthly Range: .760
    • New decade lows made last month

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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