Stock indexes advance on short-covering rally, upside limited

Daily Market Analysis (SHORT TERM) Tuesday 05/22/12


KEY TERMS

OVB       Outside Vertical Bar
VRCB    Volatility Reduced Compression Bar

ENERGIES

BRNN12:

  • Short Term Trends are bearish.
  • Confirmation of a top with a range violation on 04/30/12 @ 118.77. Confirmation of a top with a close violation on 05/02/12 @ 118.20. Downside Targets = 115.14 – 113.66 – 108.44.
  • C>HOLB (Close>High Of Low Bar) generated on Monday. Possible confirmation of a bottom with a range violation @ 109.44. Possible confirmation of a bottom with a close @ 109.44 or higher.
  • July Brent Crude is on its way higher as the Monday analysis predicted as the market saw its largest advance in nearly 5 weeks.
  • Brent may setback slightly near $108 during intraday trading on Tuesday before resuming the Short Term rally higher towards the 110.49 target listed in the Monday report.
  • Projected Daily Range: 2.61
  • Projected Weekly Range: 5.94
  • Projected Monthly Range: 10.41

CLN12:

  • Short Term Trends are bearish.
  • Confirmation of a top with a range violation on 05/03/12 @ 104.38. Confirmation of a top with a close violation on 05/03/12 @ 102.54. Downside Target = 100.44 – 93.98 – 89.97.
  • Bullish OVB generated on Monday after making new lows on current move @ 91.12.
  • June WTI Crude advanced higher on Monday as it also saw its biggest daily gain in more than a month on its way to an OVB day.
  • The upside targets at 94.93 – 95.67 listed in the Monday report should continue to be viewed as aiming points for the upside trade this week.
  • Projected Daily Range: 1.99
  • Projected Weekly Range: 5.63
  • Projected Monthly Range: 9.25

NGM12:

  • Short Term Trends are bullish.
  • Confirmation of a bottom with a range violation on 05/16/12 @ 2.532. Confirmation of a bottom with a close violation on 04/25/12 @ 2.170. Upside Targets = 2.756 – 2.861
  • Possible confirmation of a top with a range violation @ 2.588. Possible confirmation of a top with a close @ 2.588 or lower.
  • June Nat Gas sank lower on Monday as it violated Friday’s low but found a little support just below $2.60 and rallied to its last trading price of 2.649.
  • The natural gas market is beginning to show some signs of weakness at current elevated levels and technical selling above $2.70 may again drop this market below $2.50 to retest last week’s low @ 2.387.
  • Projected Daily Range: .159
  • Projected Weekly Range: .289
  • Projected Monthly Range: .460

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