KEY TERMS
OVB Outside Vertical Bar
VRCB Volatility Reduced Compression Bar
Brent Crude Oil (December):
- Short Term Trends are bullish.
- 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.
- VRCB generated on Tuesday. Possible confirmation of a bottom with a range violation @ 114.88.
- December Brent Crude gave up some ground to WTI on Tuesday exhibiting bullish divergent price action as the market put in a higher high and higher low yet closed below the previous day’s close and mid-range in a thin trading session.
- Look for Brent to break through the resistance of last week’s high as well as the psychological buffer of $115 on Wednesday to go after the upside targets of $117.87.
- Projected Daily Range: 1.80
- Projected Weekly Range: 5.34
- Projected Monthly Range: 12.02
WTI Crude Oil (December):
- Short Term Trends are bullish.
- 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.
- VRCB generated on Tuesday. Possible confirmation of a bottom with a range violation at $92.80. Possible confirmation of a bottom with a close at $92.80 or higher.
- December WTI Crude Oil narrowed the spread with Brent by more than $1 on Tuesday as it logged its second consecutive day of gains amid a tight trading session as the contract roll began.
- Given the fact that there is more than an 87% chance that last week will have either its high of $93.66 or low of $88.21 violated this week, look for the current price action to push this market higher through last week’s high to $94.91.
- 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 10/16/12 @ 3.446. Confirmation of a top with a close violation on 10/16/12 @ 3.437. Downside Targets = 3.338 – 3.263.
- November Natural Gas dropped lower for the second consecutive day on Tuesday before finding support just a single tick above the July 31 high and moving sideways during much of the second half of the pit trading session.
- Unless natural gas can continue to accelerate lower down through the previous two weeks low range of $3.325 and $3.327 the bulls may return to this market soon as the profit taking sell-off expires and the price continue to rise back higher toward the top of our Intermediate Term resistance zone near $3.747.
- Projected Daily Range: .113
- Projected Weekly Range: .349
- Projected Monthly Range: .624
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. Upside Targets = 1807.10 – 1826.30.
- Inside compression day generated on Tuesday. Possible confirmation of a bottom with a range violation @ 1755.60. Possible confirmation of a bottom with a close @ 1755.60 or higher.
- December Gold drudged higher on Tuesday in what was a very choppy trading session yet closed back within the range of the daily Support Bollinger Band and in the upper 75% of the day’s trading range.
- Look for gold to build on the little momentum it garnered on Tuesday as it challenges this week’s high $1,755.50 on its way to new upside targets of $1,807.10-$1,826.30.
- Projected Daily Range: 20.30
- Projected Weekly Range: 43.80
- Projected Monthly Range: 95.30
Euro FX (December):
- Short Term Trends are bullish.
- Confirmation of a bottom with a range violation on 10/16/12 @ 1.3001. Confirmation of a bottom with a close violation on 10/16/12 @ 1.3060. Upside Targets = 1.3263 – 1.3357.
- TREND REVERSAL to bullish on a range violation @ 1.3001. TREND REVERSAL to bullish with a close @ 1.3060.
- The December Euro FX followed through on Tuesday morning’s call for a strong bullish move in the FX market as it rallied through last week’s high and set itself up for a move to new 5 month highs.
- Wednesday should see the euro continue the strong move higher and towards the Short Term upside objectives of 1.3263 – 1.3357.
- Projected Daily Range: .0093
- Projected Weekly Range: .0207
- Projected Monthly Range: .0600
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.
- Possible confirmation of a bottom with a range violation @ 1451.75. Possible confirmation of a bottom with a close @ 1451.75 or higher.
- The December S&Ps continued higher on the back of stronger than expected earnings from a multitude of large-cap companies such as Goldman, Caterpillar and United Health just to name a few as the market threatened last week’s high.
- Because of strong earning released after the market by Intel and IBM, look for Wednesday to continue higher but hit its head near the 1458 level.
- Projected Daily Range: 17.25
- Projected Weekly Range: 36.25
- Projected Monthly Range: 74.50
