Natural gas bulls in control as storage numbers miss expectations

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

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 = 1749.50 – 1738.00.
  • C > HOLB (Close Above High Low Bar) generated on Thursday. Possible confirmation of a bottom with a range violation @ 1776.70. Possible confirmation of a bottom with a close @ 1776.70 or higher.
  • December Gold logged a slow and methodical advance on Thursday, closing at its highest level since Monday and ends a four-day skid of lower lows.
  • Unless gold can make a serious push higher on Friday and close above $1,777.50 gold may yet be in trouble of falling into a further correction next week down to the lower end of our downside targets before finding support.
  • Projected Daily Range: 15.90
  • 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.
  • Bullish OVB generated on Thursday after making new lows on the current move @ 1.2833.
  • The December Euro FX followed through on Thursday morning’s report as it found solid footing near the previous two weeks lows and roared back to close over 100 points off its lows.
  • Should the euro follow through on Thursday’s rally and close above 1.30 this week, look for this market to make a move back above 1.32.
  • Projected Daily Range: .0114
  • 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.
  • Bearish OVB generated on Thursday making new lows on current move @ 1421.25.
  • The December S&Ps traded just one tick through our initial downside objective on Thursday before moving back almost 20 points higher on a better than expect unemployment report; however, this rally proved to be unsustainable and the market settled below the day’s mid-range.
  • The S&Ps will need to make a move higher on Friday and close back above Thursday’s high of 1539.25 or else set itself up for a continuation of the current correction down near or below 1400.
  • Projected Daily Range: 16.50
  • Projected Weekly Range: 31.25
  • Projected Monthly Range: 74.50
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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