Gold pumps brakes on freefall, oil turns bullish

Gold downside target still looms

Daily Market Analysis (SHORT TERM) Thursday 03/08/12

OVB       Outside Vertical Bar
VRCB    Volatility Reduced Compression Bar



  • Short Term Trends are bullish.
  • Possible confirmation of a bottom with a range violation @ 124.46. Possible confirmation of a bottom with a close @ 124.46 or higher.
  • April Brent Crude reversed course Wednesday, generating its highest close of the week as it looks to push back higher and go after its Weekly Upside Objective of 127.73.
  • Projected Daily Range: 2.42
  • Projected Weekly Range: 6.14
  • Projected Monthly Range: 10.51


  • Short Term Trends are bearish.
  • New low made today on current move @ 104.35. Downside Target already over 105% achieved
  • April Crude followed in Brent’s footsteps today, reversing its daily close indicator back to bullish after a smaller than expected build in inventories led the market back higher today.
  • Overall sentiment is still cautiously bullish at these levels but with positive economic news continuing to unfold, the upside remains the Short Term play.
  • Projected Daily Range: 2.32
  • Projected Weekly Range: 5.52
  • Projected Monthly Range: 10.26


  • Short Term Trends are bearish.
  • New contract lows made today @ 2.381. Downside Target @ 2.271 is 95% achieved.
  • Nat Gas broke through to new lows Wednesday as it approaches our Q1 downside objective of 2.161.
  • Before it can get there though, it will first have to break through the 01/27/12 weekly OVB low @ 2.231 from where the market garnered quite a bit of support and rallied to near $3.
  • Projected Daily Range: .077
  • Projected Weekly Range: .297
  • Projected Monthly Range: .690



  • Short Term Range Trend is bearish. Short Term Closed Trend is bullish.
  • VRCB generated today. Possible confirmation of a bottom with a range violation @ 1709.90. Possible confirmation of a bottom with a close @ 1709.90 or higher.
  • April Gold seemed to pump the breaks on the free-fall from Tuesday, trading in a very tight range as it seems to be attracting a few buyers at the recent discounted price.
  • The fall in gold may well not be over just yet however, downside targets still loom nearby @ 1639.70 – 1612.20.
  • Projected Daily Range: 29.00
  • Projected Weekly Range: 66.40
  • Projected Monthly Range: 176.10



  • Short Term Trends are bearish.
  • VRCB generated today making new lows on current move @ 1.3096. Downside Target @ 1.3100 over 100% achieved.
  • The Euro was able to hit the downside target almost to the tick today before generating a DAILY VRCB and reversing its close indicator from bearish to bullish.
  • If Wednesday’s high is violated, a possible move back to 1.3315 may occur before another round of selling begins to go after new 2012 lows.
  • Projected Daily Range: .0092
  • Projected Weekly Range: .0305
  • Projected Monthly Range: .0601



  • Range Trend is bearish. Closed Trend is bullish.
  • Inside day on Wednesday. Possible confirmation of a bottom with a range violation @ 1366.00. Possible confirmation of a bottom with a close @ 1366.00 or higher.
  • The March S&P’s moved back higher today on positive economic reports and also coming from very oversold intraday levels following Tuesday’s massive selloff.
  • Unless the S&P’s can close above Wednesday’s high, the bias in this market remains the same that a serious correction is still necessary for this market to move solidly higher.
  • Projected Daily Range: 17.25
  • Projected Weekly Range: 23.50
  • Projected Monthly Range: 73.50


About the Author
Jim Parrish and Kris Hicks

Parrish Hicks Capital Research is a trading and technical analysis firm that specializes in Energy and Metal commodity futures. The two founders, Jim Parrish and Kris Hicks, have a combined 38 years’ experience 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. They also called the all-time high day for Gold on September 6, 2011 and forecasted a projected downside target of 1528.10 in March 2012.  Their trading methodology has a high degree of accuracy which confirms tops/bottoms, projected trading ranges and projected targets for those ranges. Their expertise is focused on 16 commodities plus the comparable ETF markets. You can reach them at and or at

comments powered by Disqus
Check out Futures Magazine - Polls on LockerDome on LockerDome