KEY TERMS
OVB Outside Vertical Bar
VRCB Volatility Reduced Compression Bar
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
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
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
ENERGIES
Brent Crude Oil (January ‘13):
- Short Term Trends are bullish.
- Confirmation of a bottom with a range violation on 11/30/12 @ 111.31. Confirmation of a bottom with a close violation on 11/06/12 @ 109.11. Upside Targets = 110.78 – 112.12.
- Close < Low of High Day generated on Tuesday.
- January Brent Crude followed through on Monday’s divergent price action before finding a little support above $109 and trading back up near $110 and settling below the daily mid-range.
- Unless Brent is able to sustain some of the late day momentum, this market could come under additional pressure and retest last week’s low of 108.44 before any additional support can be found.
- Projected Daily Range: 1.53
- Projected Weekly Range: 3.89
- Projected Monthly Range: 9.03
WTI Crude Oil (January ‘13):
- Short Term Trends are bullish.
- Confirmation of a bottom with a range violation on 11/30/12 @ 86.70. Confirmation of a bottom with a close violation on 11/06/12 @ 87.86. Upside Targets = 88.99 – 89.89.
- Close < Low of High Day generated on Tuesday.
- January WTI Crude Oil also dropped lower on Tuesday but found a lot of support just below yesterday’s price of 88.04 as the market was able to rally back and close above the day’s mid-range pointing to a possible pop in prices on Wednesday.
- Look for an initial setback on Wednesday once again to the $88 mark and then make a move higher above Tuesday’s high and once again threaten the $90 threshold.
- Projected Daily Range: 1.60
- Projected Weekly Range: 3.36
- Projected Monthly Range: 8.74
Natural Gas (January ‘13):
- Short Term trend is bearish.
- Confirmation of a top with a range violation on 11/28/2012 @ 3.840. Confirmation of a top with a close violation on 11/28/2012 @ 3.801. Downside Targets = 3.746 – 3.708.
- New lows made on current move Tuesday @ 3.525.
- January Natural Gas was unable to sustain the rally in prices from Monday as it generated new lows on the current move by a single tick while once again approaching the daily SBB and the psychological support price of $3.50.
- Natural gas has traded virtually sideways to lower since the second half of last Friday in a 10 cent trading range and while support is clearly defined at $3.50, a trade back above $3.60 on Wednesday could help push the market higher from the current oversold position.
- Projected Daily Range: .114
- Projected Weekly Range: .317
- Projected Monthly Range: .557
