Natural gas finding support at 11-year low; gold eying $1,600

Daily Market Analysis (SHORT TERM) Monday 04/23/12

Natural gas burners

KEY TERMS

OVB       Outside Vertical Bar
VRCB    Volatility Reduced Compression Bar

ENERGIES

BRNM12:

  • Short Term Trends are bearish.
  • Confirmation of a bottom with a range violation on 04/20/12 @ 119.16. Confirmation of a top with a close violation on 04/09/12 @ 122.13. Downside Targets = 120.81.
  • Possible confirmation of a bottom with a close @ 119.16 or higher.
  • June Brent Crude moved higher to end the week last Friday as the market looks to stage a Short Term rebound after 3 solid weeks of declines.
  • With the Short Term trend being bearish, look for a rally up to 121.71 before the market turns back down again to our next target @ 115.12.
  • Projected Daily Range: 1.81
  • Projected Weekly Range: 4.13
  • Projected Monthly Range: 9.90

CLM12:

  • Short Term Trends are bearish.
  • Confirmation of a top with a range violation on 04/19/12 @ 102.62. Confirmation of a bottom with a close on 04/12/12 @ 104.10. Upside Targets = 105.29 – 106.21.
  • Possible confirmation of a top with a close @ 102.62 or lower.
  • June WTI Crude continued its trend of daily price action reversals on Friday as it moved back toward the upper end of the week’s range before closing just shy of $104.
  • WTI has now generated a weekly Parrish Hicks proprietary signal, which may indicate a possible increase in volatility over the next few weeks and trade our next downside targets @ 100.68 – 99.90.
  • Projected Daily Range: 1.89
  • Projected Weekly Range: 4.52
  • Projected Monthly Range: 9.76

NGK12:

  • Short Term Trends are bearish.
  • Confirmation of a top with a range violation on 03/22/12 @ 2.392. Confirmation of a top with a close on 03/22/12 @ 2.372. Downside Targets = 2.161 – 1.860
  • Inside VRCB generated on Friday. Possible confirmation of a bottom with a range violation @ 1.972. Possible confirmation of a bottom with a close @ 1.972 or higher.
  • June Nat Gas was unable to attract any new sellers on Friday as the market seemed to stall just above $1.90 as the 11 year low of $1.880 is seemingly providing some support in the market for the time being.
  • If gas exhibits an early week rally, look to sell aggressively as the large specs should make a run at our downside objective of 1.799 before this market stages a serious recovery.
  • Projected Daily Range: .065
  • Projected Weekly Range: .143
  • Projected Monthly Range: .620

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