Oil upside limited after bullish day, targeting $87.50

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

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
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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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