Euro gaining momentum, may challenge 2012 highs

Daily Market Analysis (SHORT TERM) Wednesday 12/05/2012


KEY TERMS

OVB       Outside Vertical Bar
VRCB    Volatility Reduced Compression Bar

CURRENCIES

Euro FX (December):

  • Short Term Trends are bearish.
  • Confirmation of a bottom with a range violation on 11/15/12 @ 1.2788. Confirmation of a bottom with a close violation on 11/19/12 @ 1.2811. Upside Targets = 1.3117 – 1.3177.
  • New highs made on current move Tuesday @ 1.3110. Upside Targets 99% achieved.
  • The December Euro FX continued higher on Tuesday to log its fourth consecutive day of gains as it approaches the October highs at 1.3147 and the contract highs of 1.3183.
  • If/when the October highs are violated, the euro should have enough momentum established to sustain an IT move higher that will challenge the 2012 spot highs at 1.3488.
  • Projected Daily Range: .0071
  • Projected Weekly Range: .0182
  • Projected Monthly Range: .0456

METALS

COMEX Gold (February ‘13):

  • Short Term Trends are bullish.
  • Confirmation of a top with a range violation on 11/28/12 @ 1729.90. Confirmation of a top with a close violation on 11/28/12 @ 1718.80. Downside Target = 1707.20 – 1694.70
  • New lows made on current move Tuesday @ 1692.60. Downside Targets over 100% achieved.
  • February Gold dropped sharply lower on Tuesday as it closed below $1,700/oz. for the first time in a month as projected in Tuesday evening’s report and also closed below the daily SBB.
  • The gold market should be near a ST bottom and value area that could find strong support at $1,682.30 and make another move back higher without closing below the November lows at $1,674.70.
  • Projected Daily Range: 20.30
  • Projected Weekly Range: 42.30
  • Projected Monthly Range: 94.70

 

INDEXES

E-Mini S&P (December)

  • Short Term Trends are bearish.
  • Confirmation of a bottom with a range violation on 11/20/12 @ 1386.00. Confirmation of a bottom with a close violation on 11/20/12 @ 1386.25. Upside Targets = 1404.00 – 1420.00.
  • The December S&P’s dropped mildly lower on Tuesday following Monday’s dramatic fall lower while trading in a tight range as it was unable to break through the 1400 floor that is currently propping this market up.
  • Wednesday should see the S&P’s break through the current floor in the market and trade down to 1391.75 to run some sell stops and let the market test the will of bulls near last week’s low of 1386.00.
  • Projected Daily Range: 13.25
  • Projected Weekly Range: 43.25
  • Projected Monthly Range: 81.50

Comments
comments powered by Disqus