Natural gas finds support amid speculation of colder winter

Daily Market Analysis (SHORT TERM) Wednesday 10/10/12

METALS

COMEX Gold (December):

  • Short Term Trends are bullish.
  • Confirmation of a top with a range violation on 10/09/12 @ 176810. Confirmation of a top with a close violation on 10/09/12 @ 1765.00. Downside Targets = 1738.00 – 1728.00
  • December Gold fell for the 3rd straight day on Tuesday as the market has dropped over $30 from last Friday’s high as technical resistance at $1800 has applied pressure on the market.
  • Look for gold to continue lower on Wednesday based on the bearish price action as the market tracks the correction mentioned in this Monday’s report down to new 4 week lows.
  • Projected Daily Range: 19.20
  • Projected Weekly Range: 45.10
  • Projected Monthly Range: 95.30

CURRENCIES

Euro FX (December):

  • Short Term Trends are bearish.
  • Confirmation of a top with a range violation on 10/09/12 @ 1.2944. Confirmation of a top with a close violation on 10/09/12 @ 1.2892. Downside Targets = 1.2734 – 1.2648
  • TREND REVERSAL to bearish @ 1.2944. TREND REVERSAL to bearish @ 1.2892.
  • The December Euro FX dropped lower for the second straight day on Tuesday, reversing the Short Term trend to bearish as both economic and debt worries damper optimism for the Eurozone’s financial success.
  • Look for the euro to continue lower on Wednesday and make new 5 week lows as the market targets an extended downside objective of 1.2648.
  • Projected Daily Range: .0101
  • Projected Weekly Range: .0247
  • Projected Monthly Range: .0600

INDEXES

E-Mini S&P (December)

  • Short Term Trends are bearish.
  • Confirmation of a top with a range violation on 10/09/12 @ 1447.25. Confirmation of a top with a close violation on 10/09/12 @ 1436.00. Downside Targets = 1421.50 – 1417.00
  • TREND REVERSAL to bearish @ 1447.25. TREND REVERSAL to bearish @ 1436.00.
  • The December S&P’s dropped sharply lower on Tuesday led by the tech sector as the market continued to show signs of weakness when trading above 1450.
  • While the S&P’s are long overdue for a modest correction, 5-7% at least, this market has repeatedly found solid support just between 1410 and 1425.
  • Note: while the S&P’s had a solid run during all of Q3, analyst are predicting a weak earning season and the IMF issued lower growth rate projections globally which could cause a serious correction to as low as 1334.75.
  • Projected Daily Range: 14.50
  • Projected Weekly Range: 31.25
  • Projected Monthly Range: 74.50
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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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