Oil upside limited after bullish day, targeting $87.50

Daily Market Analysis (SHORT TERM) Wednesday 06/06/12


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 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

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