E-mini S&P risks 1382 as earnings continue to disappoint

Daily Market Analysis (SHORT TERM) Wednesday 10/24/12

ENERGIES

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 top with a close violation on 10/18/12 @ 112.42. Downside Targets = 110.86 – 109.36.
  • New lows made on current move Tuesday @ 107.31.
  • December Brent Crude dropped to its lowest level in nearly three weeks on Tuesday as the global growth concern dominated the “risk” markets helping to push Brent below the daily SBB during intraday trading.
  • Brent is once again nearing the initial support zone of $107.18 – $106.50 but unless this market can avoid closing below $106.57 it could continue even further to as low as $103.22.
  • Projected Daily Range: 2.57
  • Projected Weekly Range: 5.35
  • Projected Monthly Range: 12.02

WTI Crude Oil (December):

  • Short Term Trends are bullish.
  • Confirmation of a top with a range violation on 10/22/12 @ 90.18. Confirmation of a top with a close violation on 10/19/12 @ 90.44. Downside Targets = 86.82 – 85.38
  • New lows generated on current move Tuesday @ 85.69.
  • December WTI Crude Oil dropped sharply lower on Tuesday to trade at its lowest level in more than three months and close below the daily Support Bollinger Band for the first time since the end of June.
  • WTI should see a modest bounce higher in early trading on Wednesday but ultimately faces continued pressure to the downside and trade to the Intermediate Term objective noted in Tuesday morning’s report of $82.95.
  • Projected Daily Range: 3.20
  • Projected Weekly Range: 4.93
  • Projected Monthly Range: 11.33

Natural Gas (November):

  • Short Term Trend is bullish.
  • Confirmation of a bottom with a range violation on 10/19/12 @ 3.592. Confirmation of a bottom with a close violation on 10/19/12 @ 3.617. Upside Targets = 3.629 – 3.747.
  • Inside compression day generated on Tuesday. Possible confirmation of a top with a range violation @ 3.425. Possible confirmation of a top with a close violation @ 3.425 or lower.
  • November Natural Gas moved back to the upside on Tuesday to the exact tick where Monday evenings report noted it would face some resistance as Monday’s fall was an overblown sell-off.
  • Look for natural gas to initially trade through Tuesday’s high where it will then need to either aggressively move higher toward Monday’s high or risk being dropped hard back toward the previous two weeks’ lows.
  • Projected Daily Range: .144
  • Projected Weekly Range: .260
  • 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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