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 05/30/12 @ 106.05. Confirmation of a top with a close violation on 05/02/12 @ 118.20. Downside Targets = 108.44 – 102.29 – 98.59.
- Possible confirmation of a bottom with a range violation @ 99.64. Possible confirmation of a bottom with a close @ 99.64 or higher.
- July Brent Crude remained virtually unchanged on Tuesday, settling just above the daily mid-range after failing to crack through $100.
- With the daily indicator rounding higher through the Support Bollinger Band, should Brent make new highs for the week this market could see an additional 3-5 days of gains as it heads towards our Short Term objective of 103.67.
- Projected Daily Range: 3.29
- Projected Weekly Range: 7.06
- Projected Monthly Range: 11.82
CLN12:
- Short Term Trends are bearish.
- Confirmation of a top with a range violation on 05/30/12 @ 89.27. Confirmation of a top with a close violation on 05/03/12 @ 102.54. Downside Target = 89.97 – 84.37
- Possible confirmation of a bottom with a range violation @ 84.93. Possible confirmation of a bottom with a close @ 84.93 or higher.
- July WTI Crude managed to put in its first daily advance in more than a week on Tuesday in a relatively quiet trading day.
- Should WTI generate new highs for the week on Wednesday, look for the rest of the projected weekly trading range to be to the upside at the weekly objective at $87.50.
- Projected Daily Range: 3.03
- Projected Weekly Range: 6.29
- Projected Monthly Range: 11.27
NGN12:
- Short Term Trends are bullish.
- Confirmation of a bottom with a range violation on 06/04/12 @ 2.441. Confirmation of a bottom with a close violation on 06/05/12 @ 2.477. Upside Targets = 2.594 – 2.661.
- VRCB generated on Tuesday.
- July Nat Gas moved just a shade higher on Tuesday as it generated the 3rd VRCB in the last 5 trading sessions yet closing at its highest level over that same period.
- If/when Tuesday’s high is violated @ 2.477, look for this mini-consolidation period to break-out higher toward our Short Term objectives above $2.60.
- Projected Daily Range: .106
- Projected Weekly Range: .301
- Projected Monthly Range: .490
METALS
GCQ12:
- Short Term Trends are bearish.
- Confirmation of a bottom with a range violation on 06/01/12 @ 1574.70. Confirmation of a bottom with a close violation on 06/01/12 @ 1601.50. Upside Targets = 1677.50
- Inside Double VRCB generated on Tuesday.
- August Gold saw very little volatility again on Tuesday as it generated its second consecutive VRCB in signs that the market was still catching up from the massive move higher last Friday.
- Should Tuesday’s high be violated at $1,624.80, gold could see another $50 move higher by weeks end as it moves toward our upside objective of $1,677.50.
- Projected Daily Range: 33.40
- Projected Weekly Range: 79.50
- Projected Monthly Range: 105.90
CURRENCIES
ECM12:
- Short Term Trends are bearish.
- Confirmation of a bottom with a range violation on 06/05/12 @ 1.2512. Confirmation of a top on a close violation 05/04/12 @ 1.3089. Downside Targets = 1.2623 – 1.2324 – 1.2097.
- Possible confirmation of a bottom with a close @ 1.2512 or higher.
- The June Euro FX dropped lower on Tuesday after making new 5 session highs as traders used the Short Term rally as a selling opportunity amid a strong USD.
- The Euro should continue to work out to the side over the next couple of weeks before the Greek elections and volatility explodes in the wake of the Euro’s fate.
- Projected Daily Range: .0144
- Projected Weekly Range: .0310
- Projected Monthly Range: .0575
INDEXES
ESM12:
- Short Term Trends are bearish.
- Confirmation of a top with a range violation on 05/31/12 @ 1307.75. Confirmation of a top with a close violation on 05/31/12 @ 1306.00. Downside Targets = 1274.25 – 1258.50.
- Close > High Of Low Bar generated on Tuesday. Possible confirmation of a bottom with a range violation @ 1287.00. Possible confirmation of a bottom with a close @ 1287.00 or higher.
- The June S&P’s had their best day in over a week on Tuesday after generating a bullish close reversal which should point the market back to the upside over the next few days.
- It looks like the 100% probability of this market trading 1252.50 may not happen this week. However, with jobless claims coming out on Thursday and this market rallying on “hopes and dreams,” one should never say never.
- Projected Daily Range: 24.25
- Projected Weekly Range: 54.75
- Projected Monthly Range: 90.25
