Natural gas breakout nears key Fibonacci level

Daily Market Analysis (SHORT TERM) Wednesday 09/12/12


KEY TERMS

OVB       Outside Vertical Bar
VRCB    Volatility Reduced Compression Bar

ENERGIES

Brent Crude Oil (November):

  • Short Term Trends are bullish.
  • Confirmation of a bottom with a range violation on 09/11/12 @ 114.59. Confirmation of a bottom with a close violation on 08/31/12 @ 114.57. Upside Target = 122.19 – 124.11.
  • VRCB generated on Tuesday.
  • November Brent Crude spent most of Tuesday’s session within less than a $1.00 trading range as concerns over the legality of the ECB’s bond-buying program kept investors on the sidelines.
  • Should the German court approve the legality of the ECB’s program, it should provide the fundamental support to go along with the technical indicators that are suggesting a move markedly higher to the $124 price target.
  • Projected Daily Range: 1.84
  • Projected Weekly Range: 5.00
  • Projected Monthly Range: 1305

WTI Crude Oil (October):

  • Short Term Trends are bullish.
  • Confirmation of a bottom with a range violation on 09/04/12 @ 96.93. Confirmation of a bottom with a close violation on 09/11/12 @ 97.17. Upside Targets = 100.04 – 101.56.
  • DOUBLE VRCB generated on Tuesday.
  • October WTI Crude Oil continued higher throughout Tuesday trading although in a very narrow range while closing at its second highest price level in four months.
  • With both EIA storage data being unveiled tomorrow morning and oversees policy action in the market tomorrow, expect WTI’s recent bullish price action to drive the market higher in early trading.
  • Projected Daily Range: 2.16
  • Projected Weekly Range: 4.60
  • Projected Monthly Range: 10.76

Natural Gas (October):

  • Short Term Trend is bearish.
  • Confirmation of a bottom with a range violation on 09/11/12 @ 2.889. Confirmation of a bottom with a close violation on 09/11/12 @ 2.889. Downside Targets = 2.563 – 2.484.
  • Bullish ERVB (Extended Range Vertical Bar) generated on Tuesday. Parrish Hicks proprietary confirmation of a bottom @ 2.889. Upside Targets already over 105% achieved.
  • October Natural Gas continued its explosive bullish price action on Tuesday as it traded through $3.00 and closed outside the daily Resistance Bollinger Band while stopping just shy of the 61.8% Fib retracement price as measured from the 07/31 high to the 08/29 low.
  • With the current WEEKLY RANGE more than 331% extended in terms of rate of change, look for the upside price target of $3.066 listed in Tuesday morning’s report to provide a price target to take profits for the longs and strong bears to re-enter the market.
  • Projected Daily Range: .141
  • Projected Weekly Range: .269
  • Projected Monthly Range: .665

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