Natural gas targets $3.70 in rebound

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

METALS

COMEX Gold (December):

  • Short Term Trends are bearish.
  • Confirmation of a top with a range violation on 11/02/12 @ 1698.60. Confirmation of a top with a close violation on 11/02/12 @ 1698.60. Downside Targets = 1653.70 – 1642.60
  • Bullish ERVB (Extended Range Vertical Bar) generated on Tuesday. Possible confirmation of a bottom @ with a range violation @ 1721.00. Possible confirmation of a bottom with a close @ 1721.00 or higher OR a range violation @ 1727.60.
  • December Gold generated sharp returns higher on Tuesday as the previous three sessions have been highly volatile while trading within a $40 range as the market appears to be setting the stage for a drastic move higher in anticipation of an Obama re-election.
  • Should the incumbent return to office, expect gold to breakout to the upside and target our year end objective of $2,000+/oz. as continued money printing and QE measures roll along with an increased likelihood of the U.S. seriously approaching the fiscal cliff.
  • Projected Daily Range: 23.30
  • Projected Weekly Range: 41.60
  • Projected Monthly Range: 103.60

CURRENCIES

Euro FX (December):

  • Short Term Trends are bullish.
  • Confirmation of a top with a range violation on 11/02/12 @ 1.2929. Confirmation of a top with a close violation on 11/02/12 @ 1.2886. Downside Targets = 1.2735 – 1.2676.
  • The December Euro FX moved back higher on Tuesday to close within the range of the daily Support Bollinger Band after trading to within less than a penny of the Q4 downside objective.
  • Expect the euro to move back to the upside in the short term as the USD falls on anticipation of more money printing and expected inflation.
  • Projected Daily Range: .0090
  • Projected Weekly Range: .0218
  • Projected Monthly Range: .0501

INDEXES

E-Mini S&P (December)

  • Short Term Trends are bearish.
  • Confirmation of a bottom with a range violation on 11/01/12 @ 1418.50 Confirmation of a bottom with a close violation on 11/01/12 @ 1423.25. Upside Targets = 1439.25 – 1448.25.
  • Possible confirmation of a top with a range violation @ 1402.25. Possible confirmation of a top with a close @ 1402.25 or lower.
  • The December S&Ps moved back to the upside on Tuesday as the risk markets gained as a whole following the theme of possible political certainty and the discourse of the country just a few hours ahead of us.
  • Unfortunately for bulls, with the consensus of the pundits pointing towards an Obama re-election, the stock market will most likely see a Short Term correction as business’ are disappointed and the market looks to head a shade lower to 1378 before finding some Intermediate Term support.
  • Projected Daily Range: 19.50
  • Projected Weekly Range: 40.25
  • Projected Monthly Range: 76.25
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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