Natural gas targets $3.70 in rebound

Daily Market Analysis (SHORT TERM) Wednesday 11/07/12


KEY TERMS

OVB       Outside Vertical Bar
VRCB    Volatility Reduced Compression Bar

ENERGIES

Brent Crude Oil (December):

  • Short Term Trends are bearish.
  • Confirmation of a bottom with a range violation on 11/06/12 @ 110.27. Confirmation of a bottom with a close violation on 11/06/12 @ 110.27. Upside Targets = 112.48 – 114.73.
  • December Brent Crude exploded higher on Tuesday because of the tensions near the Saudi/Yemen border as well as possible closure to the uncertainty hinging with the current presidential election cycle.
  • Look for a move back lower tomorrow in early trading near $110 before moving back to the upside near the first upside objective.
  • Projected Daily Range: 2.35
  • Projected Weekly Range: 4.63
  • Projected Monthly Range: 10.65

WTI Crude Oil (December):

  • Short Term Trends are bearish.
  • Confirmation of a bottom with a range violation on 11/06/12 @ 87.43. Confirmation of a bottom with a close violation on 11/06/12 @ 87.43. Upside Targets = 90.22 – 91.34.
  • December WTI Crude Oil moved sharply higher on Tuesday with the rest of the risk assets as it completed a weekly OVB while moving all the way back to the mid-Bollinger Bands.
  • Expect for WTI to move back higher on Wednesday before moving into heavy resistance near $91 near the week’s end.
  • Projected Daily Range: 2.65
  • Projected Weekly Range: 4.26
  • Projected Monthly Range: 10.61

Natural Gas (December):

  • Short Term trend is bearish.
  • Confirmation of a top with a range violation on 10/25/12 @ 3.751. Confirmation of a top with a close violation on 10/26/12 @ 3.724. Downside Targets = 3.501 – 3.476.
  • Close > High of the Low Bar generated on Tuesday. Possible confirmation of a bottom with a range violation @ 3.621. Possible confirmation of a bottom with a close violation @ 3.621 or higher.
  • December Natural Gas moved back to the upside on Tuesday following Monday’s reduction in volatility as it found support once again just above $3.50 and close back inside the Support Bollinger Band due to a late session rally.
  • Natural gas’ strong price action should lead to a higher Wednesday and the market may approach $3.70 on its way back to the upside and the eventual test of last week’s high.
  • Projected Daily Range: .117
  • Projected Weekly Range: .314
  • Projected Monthly Range: .624

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