Bernanke paves way for $2,000 gold target

Daily Market Analysis (SHORT TERM) Tuesday 09/04/12

ENERGIES

Brent Crude Oil (October):

  • Short Term Trends are bullish.
  • Confirmation of a bottom with a range violation on 08/31/12 @ 113.45. Confirmation of a bottom with a close violation on 08/31/12 @ 114.57. Upside Target = 122.19 – 124.11.
  • New highs made on current move Monday @ 115.98. Upside Target 30% achieved.
  • October Brent Crude continued higher on Monday in light trading due to the US holiday following Friday’s explosion higher due to the prospect of further QE.
  • As mentioned in last Thursday evening’s report, the opportunity for additional QE should propel Brent prices back near the $120 level this week before Friday’s NFP report.
  • Projected Daily Range: 2.08
  • Projected Weekly Range: 5.44
  • Projected Monthly Range: 1305

WTI Crude Oil (October):

  • Short Term Trends are bullish.
  • Confirmation of a top with a range violation on 08/27/2012 @ 95.40. Confirmation of a top with a close violation on 08/30/2012 @ 94.62. Upside Targets = 100.04 – 101.56.
  • C > HOLB (Close Above the High of the Low Bar) generated on Friday. Possible confirmation of a bottom with a range violation @ 96.93. Possible confirmation of a bottom with a close violation @ 96.93 or higher.
  • October WTI Crude Oil reversed direction on Friday to move sharply higher after Chairman Bernanke opened the door for additional QE stimulus, pointing to a lower USD and rising commodity prices across the board.
  • We expect that WTI should not only break through last week’s high of $97.72 but move on to new four-month highs back above $100 to at least $101.56 by this holiday-shortened week’s end.
  • Projected Daily Range: 2.26
  • Projected Weekly Range: 5.04
  • Projected Monthly Range: 10.76

Natural Gas (October):

  • Short Term Trend is bearish.
  • Confirmation of a bottom with a range violation on 08/31/2012 @ 2.768. Confirmation of a bottom with a close violation on 08/31/2012 @ 2.799. Upside Targets = 2.836 – 2.915.
  • October Natural Gas was able to continue its move higher on Friday, confirming a Short Term bottom and closing at its highest level all week.
  • Based on last week’s price action, natural gas should move higher through 2.808 and as high as 2.915 before running into any further resistance and falling back below $2.60 to our Q3 objective of 2.563.
  • Projected Daily Range: .107
  • Projected Weekly Range: .185
  • Projected Monthly Range: .665
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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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