Gold grasps for support to end correction

Daily Market Analysis (SHORT TERM) Tuesday 10/16/12

ENERGIES

Brent Crude Oil (December):

  • Short Term Trends are bearish.
  • Confirmation of a top with a range violation on 10/15/12 @ 112.92. Confirmation of a bottom with a close violation on 10/09/12 @ 113.41. Upside Targets = 117.15 – 117.88.
  • December Brent Crude erased some early session losses as it put in a late day rally to close just off the session’s high signaling that Monday’s confirmation of a top could in fact be a false top should last week’s high of $114.95 be exceeded on Tuesday.
  • The strong close supports a move back above $115 on Tuesday to new four-week highs and if Brent is able to close above $115 it will support a weekly upside objective of $117.80.
  • Projected Daily Range: 2.35
  • Projected Weekly Range: 5.34
  • Projected Monthly Range: 12.02

WTI Crude Oil (November):

  • Short Term Trends are bearish.
  • Confirmation of a top with a range violation on 10/15/12 @ 91.01. Confirmation of a bottom with a close violation on 10/09/12 @ 92.39. Upside Targets = 94.56 – 95.72.
  • Possible confirmation of a top with a close @ 91.01 or lower.
  • November WTI Crude Oil followed through on this weekend’s projection of a retest of $90 and then found strong support as it moved back higher to close in the upper 80% of the day’s trading range.
  • WTI continues to lag Brent as the spread has widened to $22.55 as of Monday’s close and current price action suggest for the spread to widen even further as WTI may find it harder to log consistent gains.
  • Projected Daily Range: 2.57
  • Projected Weekly Range: 5.11
  • 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.
  • Bearish ERVB (Extended Range Vertical Bar) generated on Monday. Possible confirmation of a top with a range violation @ 3.446. Possible confirmation of a top with a close @ 3.446 or lower.
  • November Natural Gas sank lower on Monday, leaving a weekly close gap after Friday’s bearish VRCB formation as a profit taking sell-off got underway as projected in this Monday’s report.
  • Look to sell all rallies aggressively on Tuesday expecting Monday’s low of $3.447 to be violated and eventually fall back near last week’s low of $3.327 at a minimum.
  • Projected Daily Range: .131
  • Projected Weekly Range: .349
  • 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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