Oil makes downside target, possible lower target

Daily Market Analysis 02/03/12

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.
  • New low made today on current move @ 95.44. Downside Target over 115% achieved.
    • March Crude pushed decisively lower today as it traded through our initial downside target of 95.69 and closed below the SBB.
    • With a weekly close below 97.70, crude will set up for a push lower toward 90.05 down to 86.63.
  • Projected Daily Range: 2.79
  • Projected Weekly Range: 4.62
  • Projected Monthly Range: 10.15

NGH12:

  • Trends are bearish.
  • VRCB-OVB combo generated today making new lows on current move @ 2.340. STT 1 Downside Target 95% achieved.
    • Nat Gas made new lows for the week today before finding some relief and staging a massive rally after inventory withdrawals.
    • For a market that has been so beaten and battered for the past 6 months, Nat Gas is finding a ton of support below 2.35 and if this move pans out to the upside, has the potential to reverse the trend back to bullish for the first time since last summer.
  • Projected Daily Range: .210
  • Projected Weekly Range: .440
  • Projected Monthly Range: .760

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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