Brent crude nears bearish reversal

ENERGIES

 

Brent Crude Oil (November):

  • Short Term Trends are bullish.
  • Confirmation of a top with a range violation on 09/17/12 @ 111.99. Confirmation of a bottom with a close violation on 08/31/12 @ 114.57. Upside Target = 122.19 – 124.11.
  • Bearish ERVB Extended Range Vertical Bar) generated on Monday. TREND REVERSAL to bearish @ 111.99.
    • November Brent Crude plummeted over $3.50 in less than 5 min of trading just before 1 pm CST as large HFT’s pushed prices back near the daily Support Bollinger Band.
    • Brent was somehow able to find some support at $111.50 and the lows set back 3 weeks ago and traders could look to pick up additional contracts at $112.15 with low risk trade entries for the rest of the week.
  • Projected Daily Range: 2.65
  • Projected Weekly Range: 6.18
  • Projected Monthly Range: 1305

 

WTI Crude Oil (November):

  • Short Term Trends are bullish.
  • Confirmation of a bottom with a range violation on 09/04/2012 @ 96.93. Confirmation of a bottom with a close violation on 09/11/2012 @ 97.17. Upside Targets = 100.04 – 101.56.
  • Bearish ERVB (Extended Range Vertical Bar) generated on Monday. Possible confirmation of a top with a range violation @ 94.97. Possible confirmation of a top with a close @ 94.97 or lower.
    • November WTI Crude Oil sank dramatically lower in the previously chronicled HFT issue that pushed the market nearly $5 lower in a matter of just a few minutes.
    • While rumors of an SPR release have been floating around for numerous weeks, current prices shouldn’t support such a move and look for strong bulls to use today’s drop as a Intermediate Term buying point as the market should move back near the $100 level towards the end of the week.
  • Projected Daily Range: 2.61
  • Projected Weekly Range: 4.42
  • Projected Monthly Range: 10.76

 

Natural Gas (October):

  • Short Term Trend is bearish.
  • Confirmation of a top with a range violation on 09/17/2012 @ 2.919. Confirmation of a top with a close violation on 09/17/2012 @ 2.865. Downside Targets = 2.778 – 2.705.
    • October Natural Gas continued lower in early trading on Monday before becoming stagnant throughout most of the session as it settled less than a penny off the day’s low.
    • Natural gas will need to break through last Monday’s OVB high of 2.847 convincingly if it is to reach the initial downside objective 2.778.
  • Projected Daily Range: .126
  • Projected Weekly Range: .281
  • Projected Monthly Range: .665

 

METALS

 

COMEX Gold (December):

  • Short Term Trends are bullish.
  • Confirmation of a bottom with a range violation on 08/31/12 @ 1679.40. Confirmation of a bottom with a close violation on 08/31/12 @ 1679.40. Upside Targets = 1765.60 – 1809.10.
  • C < LOHB (Close Below Low High Bar) generated on Monday. Possible confirmation of a top with a range violation @ 1756.10. Possible confirmation of a top with a close @ 1756.10 or lower.
    • December Gold dropped lower in electronic trading as a sharp drop in crude oil sent commodity prices tumbling and drug gold down $15 along the way.
    • If there is any follow through on Tuesday to Monday’s technical decline, look for buyers to return to the market and bid the market back higher should gold fall below $1750/oz.
  • Projected Daily Range: 30.10
  • Projected Weekly Range: 55.50
  • Projected Monthly Range: 126.40

 

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