Gold grasps for support to end correction

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


KEY TERMS

OVB       Outside Vertical Bar
VRCB    Volatility Reduced Compression Bar

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.
  • New lows made on current move Monday @ 1729.70.
  • December Gold dropped sharply lower on Monday as it followed through on last Friday’s bearish price action on its way to new five-week lows after closing below the daily Support Bollinger Band.
  • Gold has entered into the upper echelon of the Short Term support zone located between $1,732.50–$1,719.90. Should the market hold this zone, it could soon see the end to the current seven-day correction and move back higher to finally crack the $1,800/oz. level for the first time in 2012.
  • Projected Daily Range: 21.20
  • Projected Weekly Range: 43.80
  • 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.
  • Possible TREND REVERSAL to bullish with a range violation @ 1.3001. Possible TREND REVERSAL to bullish with a close @ 1.3001 or higher.
  • The December Euro FX was able to regain some of its overnight losses sustained on Monday as it closed slightly above the daily mid-range, signaling bearish divergent price action.
  • Look for the euro to log solid gains on Tuesday as the overall risk assets should see a spike in prices that will lead to a Short Term TREND REVERSAL back to bullish after a true correction was unable to play out.
  • Projected Daily Range: .0095
  • Projected Weekly Range: .0207
  • 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.
  • Bullish OVB generated on Monday after making new lows on current move @ 1416.50. Downside Targets over 135% achieved.
  • The December S&Ps logged massive gains on Monday after violating last week’s low to settle just off the day’s high following strong earnings from the financial sector.
  • As earning season gets underway look for mostly volatile trading sessions and the market to move mostly sideways between 1400 and 1450 throughout the next few weeks.
  • Projected Daily Range: 17.50
  • Projected Weekly Range: 36.25
  • Projected Monthly Range: 74.50

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