Gold finds support near $1,770; oil remains bullish

Daily Market Analysis (SHORT TERM) Tuesday 10/09/12

ENERGIES

Brent Crude Oil (November):

  • Short Term Trends are bearish.
  • Confirmation of a bottom with a range violation on 10/05/12 @ 112.70. Confirmation of a top with a close violation on 10/03/12 @ 108.17. Downside Targets = 103.22 – 101.89.
  • Inside compression day generated on Monday. Possible TREND REVERSAL to bullish with a close @ 112.70 or higher OR a range violation above 113.40.
  • November Brent Crude opened the session with a sharp drop lower in overnight trading before rallying higher to close just fractionally lower but above the day’s mid-range.
  • Look for Brent to continue higher on Tuesday and go after the previous two weeks high at $113.40 before finding heavy resistance just above $115.
  • Projected Daily Range: 2.42
  • Projected Weekly Range: 6.82
  • Projected Monthly Range: 12.02

WTI Crude Oil (November):

  • Short Term Trends are bearish.
  • Confirmation of a top with a range violation on 10/03/12 @ 91.25. Confirmation of a top with a close violation on 10/03/12 @ 88.94. Downside Targets = 89.28 – 86.44.
  • November WTI crude oil traded mostly lower on Monday in a subdued trading session yet logged a sizable rally in the second half of trading to finish the session in the upper 75% of the day’s trading range.
  • Look for WTI to continue the bullish momentum heading into Tuesday as global economic concerns are trumped by an escalating crisis in the Middle East.
  • Projected Daily Range: 2.47
  • Projected Weekly Range: 6.15
  • Projected Monthly Range: 11.33

Natural Gas (November):

  • Short Term Trend is bullish.
  • Confirmation of a top with a range violation on 10/05/12 @ 3.347. Confirmation of a bottom with a close violation on 09/25/12 @ 3.105. Upside Targets = 3.602 – 3.747.
  • Possible confirmation of a top with a close violation @ 3.347 or lower.
  • November Natural Gas was unable to violate last week’s low of $3.325, stopping just two ticks above it and then rallying strongly in the second half of trading to settle back above $3.40.
  • The strong bullish price action in natural gas should help give this market the support it needs in the near term to push through last week’s highs of $3.546 and trade to the upside targets.
  • Projected Daily Range: .102
  • Projected Weekly Range: .328
  • Projected Monthly Range: .624
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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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