Natural gas could crack $4.00, oil sees short coverings

Daily Market Analysis (SHORT TERM) Friday 10/26/12

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.
  • Possible confirmation of a bottom with a range violation @ 1719.00. Possible confirmation of a bottom with a close @ 1719.00 or higher.
  • December Gold moved back to the upside on Thursday after the market traded to within $1 of our Q4 downside objective and closed in the upper 70% of the session’s trading range.
  • If gold can push through Thursday’s highs of $1,718.90 heading into the weekend, look for the market to take a shot at the current weekly highs before extending its gains to as high as $1,776.
  • Projected Daily Range: 20.20
  • 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 sank lower in Thursday trading as it erased some of its early session advances and closed at its lowest point since the 11th.
  • Expect the euro to fall lower again on Friday to target the current downside targets just below 1.29 heading into the weekend.
  • Projected Daily Range: .0097
  • Projected Weekly Range: .0239
  • Projected Monthly Range: .0600

INDEXES

E-Mini S&P (December)

  • Short Term Trends are bearish.
  • Confirmation of a top with a range violation on 10/22/12 @ 1423.25. Confirmation of a top with a close violation on 10/23/12 @ 1416.25. Downside Targets = 1387.00 – 1382.00.
  • Bearish OVB generated on Thursday making new lows on the current move @ 1399.50. Downside Targets over 145% achieved.
  • The December S&Ps settled just fractionally higher on Thursday despite trading below the 1400 threshold for the first time since QE3 was announced because it could not build on better than expected jobless claims and durable goods orders.
  • The S&Ps should decline even further on Friday as earnings results from both Amazon and Apple were not as strong as expected to go along with a lower Q1 target issued by Apple, which should push the market down near the 1393 level by the end of trading.
  • Projected Daily Range: 20.25
  • Projected Weekly Range: 39.50
  • Projected Monthly Range: 74.50
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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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