Oil weakness brings $80 target into play

Daily Market Analysis (SHORT TERM) Thursday 11/08/12

METALS

COMEX Gold (December):

  • Short Term Trends are bearish.
  • Confirmation of a bottom with a range violation on 11/07/12 @ 1721.00. Confirmation of a bottom with a close violation on 11/07/12 @ 1727.60. Upside Targets = 1749.70 – 1769.10.
  • December Gold realized another volatile trading session on Wednesday as investors initially poured into the market on the assumption of extended QE and a lower USD but erased those gains throughout the session as the overall bearish tone dominated the floor.
  • Going into the end of the year, traders should look for gold to log higher lows and higher highs as the $1,800/oz. mark goes before months end.
  • Projected Daily Range: 21.10
  • 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.
  • Bearish OVB generated on Wednesday making new lows on current move @ 1.2741.
  • The December Euro FX shrugged off overnight gains on Wednesday as violent protests broke out in Greece during an austerity vote, marking a continued resistance to Eurozone policies as it traded to within six ticks of our initial downside objective.
  • While the fundamentals behind the USD may be weaker than normal, the euro will be hard pressed to advance as opposition to the austerity packages continue in addition to lowered GDP expectations.
  • Projected Daily Range: .0093
  • Projected Weekly Range: .0218
  • Projected Monthly Range: .0501

INDEXES

E-Mini S&P (December)

  • Short Term Trends are bearish.
  • Confirmation of a top with a range violation on 11/07/12 @ 1402.25. Confirmation of a top with a close violation on 11/07/12 @ 1402.25. Downside Targets = 1378.25 – 1367.50.
  • The December S&Ps dropped sharply lower on Wednesday for their worst single day loss in a year after the re-election of President Obama signaled more possible political stalemates that could lead our country over the fiscal cliff.
  • With the stock market off by more than 2% on Wednesday, look for a modest increase in overnight trading and into early morning before the selling resumes and the market closes the week near 1375.
  • Projected Daily Range: 21.75
  • 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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