Crude oil market showing signs of support

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

CLH12:

  • Trends are bearish.
  • C < LOHB (Closed Below The Low Of A High Bar). Possible STT 1 confirmation of a top with a range violation @ 97.31. Possible STT 2 confirmation of a top with a close @ 97.31 or lower.
    • March Crude faced initial selling pressure overnight on Friday but was able to catch a rally after the pit opened and continued to climb throughout the session and last traded @ 99.05.
    • The crude market has begun to show signs of resilience after trading 25 ticks through our last short term downside target of 95.69.
      • If last week’s high is violated, look for a possible move up to 102.44.
  • Projected Daily Range: 2.03
  • Projected Weekly Range: 4.73
  • Projected Monthly Range: 10.15

NGH12:

  • STT 1 Trend is bullish. STT 2 Trend is bearish.
  • VRCB generated on Friday. Possible STT 1 TREND REVERSAL from bullish to bearish with a range violation @ 2.389.
    • Nat Gas traded in a 77 tick range on Friday and closed unchanged on the day as the market has been fairly stagnant for the past 8 sessions.
    • While this is decisively a bear market, Nat Gas is having a tough time breaking through to new decade lows and continues to have support under 2.40.
      • Our Q1 initial downside targets have already been achieved and overextended however, the last downside target remains standing at 2.161.
  • Projected Daily Range: .125
  • Projected Weekly Range: .430
  • 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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