Gold sellers bring $1,427 target into play

Daily Market Analysis (SHORT TERM) Wednesday 05/23/12

KEY TERMS

OVB       Outside Vertical Bar
VRCB    Volatility Reduced Compression Bar

METALS

GCM12:

  • Short Term Trends are bearish.
  • Confirmation of a bottom with a range violation on 05/18/12 @ 1579.90. Confirmation of a bottom with a close violation on 05/18/12 @ 1591.90. Upside Targets 1624.10 – 1648.30.
  • Close < Low Of High Bar generated on Tuesday. Possible confirmation of a top with a range violation @ 1560.90. Possible confirmation of a top with a close @ 1560.90 or lower.
  • June Gold was able to find some initial support above $1,560 as we suggested in the Tuesday report but sank lower after the pit session closed and is now looking to make another move lower to retest the recent 2012 lows at $1,526.70.
  • If Gold traders initiate fresh selling and drop this market to new contract lows, $1,500/oz. may not hold and this market could be faced to trade to our  Major-Term downside objective of $1,427.00.
  • Projected Daily Range: 25.90
  • Projected Weekly Range: 62.70
  • Projected Monthly Range: 92.10

CURRENCIES

ECM12:

  • Short Term Trends are bearish.
  • Confirmation of a top with a range violation on 05/03/12 @ 1.3123. Confirmation of a top on a close violation 05/04/12 @ 1.3089. Downside Targets = 1.2805 – 1.2623.
  • The June Euro FX gave back everything it had gained on Monday during the Tuesday trading session as the short-covering rally did not last long and sellers dropped this market hard above 1.2800.
  • Should the Euro break through to new 2012 lows below 1.2626, watch out below as the market should continue to decline all the way down to our Q2 objective of 1.2324.
  • Projected Daily Range: .0137
  • Projected Weekly Range: .0215
  • Projected Monthly Range: .0429

INDEXES

ESM12:  

  • Short Term Trends are bearish.
  • Confirmation of a top with a range violation on 05/03/12 @ 1389.00. Confirmation of a top with a close violation on 05/03/12 @ 1386.00. Downside Target = 1345.00 – 1318.50 – 1293.25.
  • The June S&P’s settled back below the daily mid-range on Tuesday as the intra-day rally fizzled going into the close as the market closed with a loss for the day.
  • We discussed with some recipients of the report on Monday that after last week we were expecting a short retracement to 1323.00 – 1339.00 with yesterday’s high @ 1326.50. Yesterday’s close indicator would suggest that if Tuesday’s low is violated @ 1307.50 and the market press lower back down through 1300.00, then it is on its way to a least 1252.50.
  • Projected Daily Range: 22.75
  • Projected Weekly Range: 47.50
  • Projected Monthly Range: 73.25

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