Oil volatility expected as trading resumes

Daily Market Analysis (SHORT TERM) Wednesday 10/31/12

METALS

COMEX Gold (December):

  • Short Term Trends are bearish.
  • Confirmation of a bottom with a range violation on 10/26/12 @ 1719.00. Confirmation of a top with a close violation on 10/09/12 @ 1765.00. Upside Targets = 1744.00 – 1775.60.
  • DOUBLE VRCB generated on Tuesday. Possible confirmation of a bottom with a close @ 1719.00 or higher.
  • December Gold has remained virtually flat in the first two sessions of trading this week as volumes have been light because of the impact of Hurricane Sandy in the northeast.
  • As New York comes back online for trading on Wednesday, should gold find any support in early trading and push through last Friday’s OVB high of $1,719.90 it should continue higher over the coming weeks toward the Short Term target of 1775.30.
  • Projected Daily Range: 17.10
  • Projected Weekly Range: 44.90
  • Projected Monthly Range: 95.30

CURRENCIES

Euro FX (December):

  • Short Term Trends are bullish.
  • Confirmation of a bottom with a range violation on 10/30/12 @ 1.2963. Confirmation of a bottom with a close violation on 10/30/12 @ 1.2969. Upside Targets = 1.3080 – 1.3108.
  • The December Euro FX moved back to the upside on Tuesday despite trading at less than 50% of the normal volume as the market was able to find buyers at 1.29 once again.
  • As previously mentioned in multiple reports as far back as two weeks ago, the current movement of the euro should viewed skeptically as it has the makings of a range bound market that should stay this way over the coming weeks.
  • Projected Daily Range: .0078
  • Projected Weekly Range: .0218
  • 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.
  • Inside VRCB generated on Monday.
  • The December S&Ps had very little trading on Monday because of the closure of the NYSE and with New York being shut down on Tuesday, expect for very low volumes to drive the market around in extremely volatile trading as the market should most likely head lower throughout the coming weeks and break through to challenge the lows set back at the beginning of August @ 1380.50.
  • Projected Daily Range: 15.25
  • Projected Weekly Range: 39.75
  • 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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