Gold sellers bring $1,427 target into play

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

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.
  • 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 saw the setback discussed in the yesterday’s report but continued to make new lows in the second half of trading on Tuesday which would point the market direction lower for Wednesday trading.
  • Brent may be finding an area of support and begin to go into a consolidation phase as long if last week’s low is not violated @ 106.40.
  • Projected Daily Range: 1.95
  • 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 on 05/03/12 @ 102.54. Downside Target = 100.44 – 93.98 – 89.97.
  • July WTI Crude did not follow through on Monday’s bullish OVB as the market sank lower in late trading, pointing the close indicator lower for Wednesday.
  • WTI seems to have experience a mild short-covering rally on Monday and you should look for new contract lows to be made on Wednesday as the market goes after the Intermediate Term downside objective of 89.97.
  • Projected Daily Range: 2.10
  • Projected Weekly Range: 5.63
  • Projected Monthly Range: 9.25

NGM12:

  • Short Term Trends are bullish.
  • Confirmation of a top with a range violation on 05/22/12 @ 2.588. Confirmation of a bottom with a close on 04/25/12 @ 2.170. Upside Targets = 2.756 – 2.861
  • Standard confirmation of a top @ 2.588. Possible Conservative confirmation of a top with a close @ 2.588 or lower.
  • June Nat Gas rallied back from its overnight losses during the Tuesday pit session before running into some pretty strong resistance above $2.70 as suggested in the Monday evening report.
  • Even though there is defined Short Term resistance above $2.70, unless Natural Gas can break to new weekly lows in the second half of the week, this market may continue on higher towards the Q2 projected high of 2.861.
  • Projected Daily Range: .152
  • Projected Weekly Range: .289
  • Projected Monthly Range: .460

 

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 Jim@ParrishHicks.com and Kris@ParrishHicks.com or at www.ParrishHicks.com.

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