U.S. stocks rallying only because of foreign weakness

Daily Market Analysis (SHORT TERM) Monday 07/30/12

ENERGIES

Brent Crude Oil (September):

  • Short Term Trends are bullish.
  • Confirmation of a bottom with a range violation on 07/27/12 @ 106.19. Confirmation of a bottom with a close violation on 07/23/12 @ 106.47. Upside Target = 109.88 – 111.83.
  • VRCB generated on Friday.
  • September Brent Crude moved firmly higher on Friday despite a less than stellar GDP report and extremely thin trading.
  • Should Friday’s price action follow through to Monday trading, look for Brent to retest the July highs @ 108.18 before breaking through to 111.83.
  • Projected Daily Range: 2.34
  • Projected Weekly Range: 5.90
  • 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. Upside Targets = 93.58 – 95.53.
  • Inside VRCB generated on Friday. Possible confirmation of a bottom with a range violation @ 90.48. Possible confirmation of a bottom with a close violation @ 90.48 or higher.
  • September WTI Crude traded within a very narrow range to end the week on Friday while logging another modest gain and closing at its highest level all week.
  • WTI should be able to see another move higher on Monday as the current price action suggests a move to new highs close to our Q3 objective of 95.53.
  • Projected Daily Range: 2.08
  • Projected Weekly Range: 5.20
  • Projected Monthly Range: 11.71

Natural Gas (September):

  • Short Term Trends are bullish.
  • Confirmation of a top with a range violation on 07/26/2012 @ 3.035. Confirmation of a top with a close violation on 07/27/2012 @ 3.015. Downside Targets = 2.874 – 2.796.
  • September Natural Gas dropped lower on Friday, giving back all of its gains from the week as while coming up just 3 ticks shy of the weekly lows.
  • Should natural gas break through Friday’s low of 2.980 on Monday, look for natural gas to trade to the downside targets by week’s end.
  • Projected Daily Range: .119
  • Projected Weekly Range: .265
  • 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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