Oil bulls push higher despite demand at 15-year low

Daily Market Analysis Friday 02/24/12

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:

  • STT 1 and STT 2 Trends are bullish.
  • New nine-month highs made on Thursday @ 108.74. Upside Target over 200% achieved.
    • April Crude moved decisively higher Thursday after initially generating a bearish OVB before reversing course and pushing towards our weekly price objective of 109.69.
    • Crude seemed to disregard fundamental reports this morning that showed a build in inventories and demand reaching 15-year lows as the technical bulls continue to push this market higher as it looks poised to go after 2011 highs in short order.
  • Projected Daily Range: 2.13
  • Projected Weekly Range: 5.08
  • Projected Monthly Range: 10.15

NGJ12:

  • STT 1 Trend is bearish. STT 2 Trend is bullish.
  • Possible STT 1 TREND REVERSAL from bearish to bullish with a range violation @ 2.834. Possible STT 2 TREND REVERSAL from bullish to bearish with a close @ 2.669 or lower.
    • Natural Gas continues to disappoint position holders in this market as it reverses course as often as the wind blows, remaining range bound between $2.85 and $2.50.
  • Projected Daily Range: .124
  • 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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