Gold in danger of falling further, S&Ps target 1400

Daily Market Analysis (SHORT TERM) Wednesday 07/18/12

ENERGIES

Brent Crude Oil (September):

  • Short Term Trends are bearish.
  • Confirmation of a bottom with a range violation on 06/26/12 @ 91.76. Confirmation of a bottom with a close violation on 06/26/12 @ 93.02. Upside Target = 103.91.
  • VRCB generated on Tuesday making new highs on current move @ 104.75. Upside Target of 105% achieved.
  • September Brent Crude traded through our upside objective listed at the end of June on Tuesday after climbing over halfway back from its decent in early May through the end of June.
  • While trading in a very thin range on Tuesday, Brent will need to see a large draw in crude inventories in order to avoid dropping back below $100 to 98.71.
  • Projected Daily Range: 2.39
  • Projected Weekly Range: 7.15
  • Projected Monthly Range: 13.99

WTI Crude Oil (September):

  • Short Term Trends are bearish.
  • Confirmation of a bottom with a range violation on 07/03/12 @ 86.50. Confirmation of a bottom with a close violation on 07/13/12 @ 87.10. Upside Targets = 90.53 – 91.32.
  • VRCB generated on Tuesday making new highs on current move @ 89.80. Upside Target 80% achieved.
  • September WTI Crude was able to crack last week’s low on Tuesday in another light day of trading before stalling just below $90 after the $12 price increase during the past three weeks.
  • WTI, like Brent, may be running out of buyers as it nears $90 on the current ST move and is technically due for a modest correction back lower unless a large storage draw is revealed in tomorrow’s EIA report.
  • Projected Daily Range: 2.04
  • Projected Weekly Range: 6.30
  • Projected Monthly Range: 11.71

Natural Gas (August):

  • Short Term Trends are bullish.
  • Confirmation of a top with a range violation on 07/10/12 @ 2.752. Confirmation of a top with a close violation @ 2.737. Downside Targets = 2.670 – 2.534.
  • August Natural Gas dropped sharply lower due to HFT as soon as the overnight session began on Monday evening but spent most of the pit session trading higher above $2.80 due to the relentless heat wave across most of the country.
  • While natural gas was able to come within two ticks of last week’s low, its resilience to break through $2.70 could spell for another upward leg to this month long rally that has brought prices up over $0.65 from the June lows.
  • Projected Daily Range: .114
  • Projected Weekly Range: .284
  • Projected Monthly Range: .586
<< Page 2 of 2
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.

Comments
comments powered by Disqus