Oil in limited trading range on steady supplies

Daily Market Analysis 02/09/12

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 high made today on current move @ 100.09. Upside Target 85% achieved.
    • March Crude nailed our initial upside projection of 100.02 today and subsequently sold off to close in the lower 35% of its daily trading range today.
    • Crude is still within a very limited trading range as supplies remain steady and market tension has been limited, however, the last two times the daily Bollinger Bands were within a $5.00 range, the market dropped from $100 to $77 and $87 to $75.
  • Projected Daily Range: 2.22
  • Projected Weekly Range: 4.66
  • Projected Monthly Range: 10.15

NGH12:

  • STT 1 Trend is bullish. STT 2 Trend is bearish.
  • Possible STT 1 TREND REVERSAL from bullish to bearish with a range violation @ 2.389.
    • Nat Gas pushed lower today to make new weekly lows and settle at its lowest level in a week on reports that there will be a larger than expect build in inventories.
    • Once this market cracks 2.390, expect an initial pop lower to retest the OVB low @ 2.340.
      • Q1 Downside Target remains @ 2.161.
  • Projected Daily Range: .141
  • 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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