Oil makes nine-month high, breaks $105

Daily Market Analysis Tuesday 02/21/12

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

CLJ12:

  • Trends are bullish.
  • New nine-month highs made on Friday @ 104.50. Upside Target over 150% achieved.
    • April Crude generated 2012’s highest settle price on Friday and gapped higher in limited trading on Monday as it broke the $105 mark for the first time since the first week in May 2011.
    • It is important to note that our Q1 Projected Range pegged the low to be @ 96.39 with an upside target of 120.35 which still stands.
      • 90% chance that last year’s high or low is violated, last year’s high = 114.83.
  • Projected Daily Range: 1.69
  • Projected Weekly Range: 5.08
  • Projected Monthly Range: 10.15

NGJ12:

  • Trends are bullish.
  • STT 2 TREND REVERSAL from bearish to bullish @ 2.824. Upside Target = 3.026.
    • Nat Gas exploded, no pun intended, higher on Friday as it made new 2 ½ week highs as it approached its daily RBB.
  • Gas should face a little downward pressure in early trading this week before finding support just below $2.70 and then rallying back towards $3.00 over the next few weeks.
  • Projected Daily Range: .126
  • Projected Weekly Range: .360
  • 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 and interest rates. You can reach them at Jim@ParrishHicks.com and Kris@ParrishHicks.com. www.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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