Natural gas may be setting up to test $1.90 low

Daily Market Analysis (SHORT TERM) Thursday 06/07/12

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
  • New highs made on current move Wednesday @ 1642.40. Targets 70% achieved.
  • August Gold looked strong in early trading on Wednesday before giving up most of its gains on the Beige Book information that led investors to think the economy may not be as bad as thought, thus reducing demand for the safe-haven metal.
  • After a more than $110/oz. move higher over the last six sessions, Gold may be due for a Short Term correction before eventually moving higher towards our upside objective of $1,677.50.
  • Projected Daily Range: 20.00
  • 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 bottom on a close violation 06/06/12 @ 1.2546. Upside Targets = 1.2628 – 1.2755
  • Upside Targets already 85% achieved.
  • The June Euro FX saw its largest one day gain in almost three months on Wednesday as the market was able to continue to move higher, relieving selling pressure.
  • Should volatility begin to dry up around our upside objectives, one should look for a strong sell signal that would send this market back to retest the lows at 1.2288.
  • Projected Daily Range: .0135
  • Projected Weekly Range: .0310
  • Projected Monthly Range: .0575

INDEXES

ESM12:  

  • Short Term Trends are bearish.
  • Confirmation of a bottom with a range violation on 06/06/12 @ 1287.00. Confirmation of a bottom with a close violation on 06/06/12 @ 1315.50. Upside Target = 1339.00.
  • The June S&P’s saw their largest one day gain of 2012 on Wednesday as the prospect for addition QE as well as a more upbeat Beige Book report lifted this market to new highs for the week and sets up for the possibility for a Short Term TREND REVERSAL back to bullish with a range violation above 1334.25.
  • The S&P’s are moving higher on “HOPES” that the fed will come to bail out the economy, which will predicate a large setback should there be a Greek exit from the Euro.
  • Projected Daily Range: 23.75
  • 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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