Oil risks testing contract lows at $88.09

Daily Market Analysis (SHORT TERM) Monday 10/22/12

METALS

COMEX Gold (December):

  • Short Term Trends are bearish.
  • Confirmation of a top with a range violation on 10/09/12 @ 1768.10. Confirmation of a top with a close violation on 10/09/12 @ 1765.00. Downside Targets = 1704.30 – 1697.70.
  • New lows made on current move Friday @ 1716.00. Downside Target over 180% achieved.
  • December Gold continued to drop lower Friday, making new six-week lows on the current correction and closing at the lowest price since Sept. 6 after trading through the Short Term support level (1728) mentioned more than two weeks ago.
  • Look for gold to generate new lows on Monday because of Friday’s confirmed bearish price action and then begin to garner strong support as it nears our Q4 downside objective of $1,697.70.
  • Projected Daily Range: 18.10
  • Projected Weekly Range: 45.30
  • Projected Monthly Range: 95.30

CURRENCIES

Euro FX (December):

  • Short Term Trends are bullish.
  • Confirmation of a top with a range violation on 10/19/12 @ 1.3061. Confirmation of a top with a close violation on 10/19/12 @ 1.3030. Downside Targets = 1.2900 – 1.2878.
  • The December Euro FX dropped lower for the second consecutive trading day on Friday after Wednesday’s gap higher opening was filled back to the downside because of continuing global economic concerns.
  • Look for the euro to start out strong on Monday in a round of short covering but continue to struggle once it trades above 1.31 as it has for the past six weeks.
  • Projected Daily Range: .0072
  • Projected Weekly Range: .0239
  • Projected Monthly Range: .0600

INDEXES

E-Mini S&P (December)

  • Short Term Trends are bearish.
  • Confirmation of a bottom with a range violation on 10/17/12 @ 1451.75. Confirmation of a bottom with a close violation on 10/17/12 @ 1457.00. Upside Targets = 1469.00 – 1482.25.
  • Possible TREND REVERSAL to bearish @ 1423.25. Possible TREND REVERSAL to bearish with a close @ 1423.25 or lower.
  • The December S&Ps logged their worst one day drop in four months on Friday as the poor earnings reports continued to roll in from GE and McDonalds.
  • Like other risk markets, look for the S&Ps to break through Friday’s low before finding some support at 1419.75 and then putting in an early morning short-covering rally to finish the session near 1430.
  • Projected Daily Range: 17.75
  • Projected Weekly Range: 39.50
  • 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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