Oil could test $90 if last week’s low violated

Daily Market Analysis 02/07/12

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.
  • Inside VRCB generated today. Possible STT 1 confirmation of a bottom with a range violation @ 98.04. Possible STT 2 confirmation of a bottom with a close @ 98.04 or higher.
    • March Crude retreated lower again today even as the S&P held steady and Brent pushed higher to widen the current spread to over $19.
    • Although Crude has reached an area of Short Term technical support and a bounce to $100 is in order, a break through last week’s low will push this market down to 90.05.
  • Projected Daily Range: 1.98
  • Projected Weekly Range: 4.66
  • Projected Monthly Range: 10.15

NGH12:

  • Trends are bearish.
  • Bullish VRCB-OVB combo generated today. Possible STT 1 TREND REVERSAL from bearish to bullish with a range violation @ 2.588. Possible STT 2 TREND REVERSAL from bearish to bullish with a close @ 2.588 or higher.
    • Nat Gas spent the second half of the pit session rallying from near its lows to generate a daily OVB and set itself up for a short term Tend Reversal and an ensuing rally back to 2.75.
    • Initial Upside Target = 2.713.
  • Projected Daily Range: .166
  • Projected Weekly Range: .460
  • 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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