Oil target of $86.44 looking vulnerable

Daily Market Analysis (SHORT TERM) Wednesday 09/26/12

METALS

COMEX Gold (December):

  • Short Term Trends are bullish.
  • Confirmation of a bottom with a range violation on 09/19/12 @ 1780.30. Confirmation of a bottom with a close violation on 08/31/12 @ 1679.40. Upside Targets = 1765.60 – 1809.10.
  • Possible confirmation of a top with a range violation @ 1757.80. Possible confirmation of a top with a close @ 1757.80 or lower.
  • December Gold came within just over $2 of the price target listed in Tuesday morning’s report stating where resistance would come back into the market before faltering in the second half of pit session trading to settle just below the day’s mid-range.
  • Expect for gold to see a modest correction in the looming days back near $1,737.50 before finding further support.
  • Projected Daily Range: 18.40
  • Projected Weekly Range: 51.60
  • Projected Monthly Range: 126.40

CURRENCIES

Euro FX (December):

  • Short Term Trends are bullish.
  • Confirmation of a top with a range violation on 08/19/2012 @ 1.3040. Confirmation of a top with a close violation on 09/20/2012 @ 1.2981. Downside Targets = 1.2832 – 1.2676
  • New lows made on current move Tuesday @ 1.2898. Downside Target 80% achieved.
  • The December Euro FX gave back some gains, as was the case in most “risk” markets on Tuesday to last trade just off the day’s low and close at its lowest level in almost 2 weeks.
  • To reiterate the best strategy for the euro at this time, expect a continuation of low volatility with sideways to slightly lower price action over the next few weeks before this market finds support just below 1.28 and makes a move back to the upside.
  • Projected Daily Range: .0089
  • Projected Weekly Range: .0324
  • Projected Monthly Range: .0532

INDEXES

E-Mini S&P (December)

  • Short Term Trends are bullish.
  • Confirmation of a top with a range violation on 09/18/12 @ 1449.25. Confirmation of a top with a close violation on 09/25/12 @ 1436.75. Downside Targets = 1419.50 – 1404.25
  • Bearish EROVB (Extended Range Vertical Bar) generated on Tuesday.
  • The December S&Ps went in the opposite direction expected on Tuesday as the early session gains were evaporated as investors turned back to concerns over Spanish finances and whether they will need an ECB bailout along with a sluggish long term growth rate expected by Caterpillar.
  • The S&Ps have been long overdue for a sizable correction and the next technical threshold that will be important for the S&Ps to hold doesn’t come into play until 1400.
  • Projected Daily Range: 14.50
  • Projected Weekly Range: 39.75
  • Projected Monthly Range: 80.25
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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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