Gold volatility picks up, on track to $1,721.90

Daily Market Analysis (SHORT TERM) Thursday 07/26/12

ENERGIES

Brent Crude Oil (September):

  • Short Term Trends are bullish.
  • Confirmation of a top with a range violation on 07/23/12 @ 105.27. Confirmation of a top with a close violation on 07/23/12 @ 103.26. Downside Target = 100.92.
  • Bullish VRCB-OVB combo generated on Wednesday after making new lows on current move @ 102.10.
  • September Brent Crude was able to find solid support below Monday’s low after shaking off a larger than expected crude inventory build.
  • Brent is still in a very strong Short Term bull market so buying this market around 103.51 should lead to a low risk entry with an initial upside price target of $110.20.
  • Projected Daily Range: 3.03
  • Projected Weekly Range: 7.15
  • Projected Monthly Range: 13.99

WTI Crude Oil (September):

  • Short Term Trends are bullish.
  • Confirmation of a top with a range violation on 07/23/12 @ 90.15. Confirmation of a top with a close violation on 07/23/12 @ 88.14. Downside Targets = 86.70 – 85.39.
  • Bullish OVB generated on Wednesday after making new lows on current move @ 86.84. Downside Target 99% achieved.
  • September WTI Crude traded to within 14 ticks of the downside target value on Wednesday after a build in inventories shocked the market but rebounded during the afternoon session, making new highs after pit-session hours.
  • WTI should now be able to continue its upward momentum towards our Q3 objective of 95.53.
  • Projected Daily Range: 2.64
  • Projected Weekly Range: 6.30
  • Projected Monthly Range: 11.71

Natural Gas (September):

  • Short Term Trends are bullish.
  • Confirmation of a bottom with a range violation on 07/18/2012 @ 2.909. Confirmation of a bottom with a close violation on 07/18/2012 @ 2.950. Upside Targets = 3.072 – 3.174.
  • C < LOHB (Close Below Low High Bar) generated on Wednesday. Possible confirmation of a top with a range violation @ 3.035. Possible confirmation of a top with a close @ 3.035 or lower.
  • September Natural Gas gapped lower on Wednesday on its way to a 12 cent decline while closing back within the daily Resistance Bollinger Band for the first time in nearly a week.
  • Natural Gas’ price action points to a lower market tomorrow but it will of course hinge mostly on the EIA Storage numbers.
  • Projected Daily Range: .129
  • Projected Weekly Range: .298
  • Projected Monthly Range: .586
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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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