Natural gas trades higher as tropical storm rolls into Gulf

Daily Market Analysis (SHORT TERM) Friday 08/24/2012

METALS

COMEX Gold (December):

  • Short Term Trends are bullish.
  • Confirmation of a top with a bottom violation on 08/17/12 @ 1622.10. Confirmation of a bottom with a close violation on 08/20/12 @ 1623.00. Upside Targets = 1644.20 – 1657.20.
  • New 4 month highs made on Thursday @ 1677.50. Upside Target over 125% achieved.
  • December Gold exploded higher for the third consecutive session on Thursday as its entire days trading range was above the daily Resistance Bollinger Band, moving more than two standard deviations above the mean.
  • After such an explosive week higher, look for gold to setback slightly on Friday as investors do some profit taking heading into the weekend.
  • Projected Daily Range: 22.60
  • Projected Weekly Range: 33.90
  • Projected Monthly Range: 105.00

CURRENCIES

Euro FX (September):

  • Short Term Trends are bullish.
  • Confirmation of a bottom with a range violation on 08/14/2012 @ 1.2379. Confirmation of a bottom with a close violation on 08/21/2012 @ 1.2451. Upside Targets = 1.2623 – 1.2699.
  • VRCB generated on Thursday making new highs on the current move @ 1.2593. Upside Target 95% achieved.
  • The euro blew through the daily Resistance Bollinger Band on Thursday as it made new six-week highs because of continued upward buying momentum and assumptions of more ECB funding to Spanish banks.
  • Although the euro had a slowdown in volatility and the Short Term upside objectives are drawing in close, the euro may be able to sustain this rally longer than initially expected and continue higher towards the Q3 objective of 1.2797 with only slight pullbacks before a larger correction ensues.
  • Projected Daily Range: .0106
  • Projected Weekly Range: .0203
  • Projected Monthly Range: .0601

INDEXES

E-Mini S&P (September):  

  • Short Term Trends are bullish.
  • Confirmation of a top with a range violation on 08/23/12 @ 1404.00. Confirmation of a top with a close violation on 08/23/12 @ 1400.00. Downside Targets = 1387.50 – 1375.50.
  • Bearish OVB generated on Thursday.
  • The September S&P’s dropped lower below 1400 for the first time in over a week on Thursday as it generated its 3rd OVB in the last four trading sessions after becoming severely overbought.
  • Although the S&P’s are in need of a serious correction down to as low as 1345, as mentioned in Wednesday’s report, increased buying near the downside target value could return to the market on anticipation of Fed stimulus being injected during next month’s meeting at Jackson Hole.
  • Projected Daily Range: 15.75
  • Projected Weekly Range: 26.75
  • Projected Monthly Range: 95.75
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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