Gold sets up for move to $1,743

Daily Market Analysis (SHORT TERM) Thursday 12/06/2012


KEY TERMS

OVB       Outside Vertical Bar
VRCB    Volatility Reduced Compression Bar

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 Wednesday @ 1686.00. Downside Targets 110% achieved.
  • February Gold continued lower on Wednesday but was able to find some solid support within the range of the low day of the last three months (11/5/12) and settle back near the daily SBB.
  • Gold should make a strong move back higher on Thursday to close back above Wednesday’s high and make a run over the coming weeks to $1,743.60.
  • Projected Daily Range: 19.90
  • Projected Weekly Range: 42.30
  • Projected Monthly Range: 94.70

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 Wednesday @ 1.3130. Initial Upside Target over 110% achieved.
  • The December Euro FX logged its first losing day in over a week on Wednesday as the market fell just short of breaking through the October highs and daily RBB to settle back in the lower 30% of the day’s trading range.
  • The possible correction that the euro may see should be limited to a 4-6 day move that does not drop below 1.2938 before buyers return to market and chase down the 2012 highs.
  • Projected Daily Range: .0073
  • Projected Weekly Range: .0182
  • Projected Monthly Range: .0456

INDEXES

E-Mini S&P (December)

  • Short Term Trends are bearish.
  • Confirmation of a top with a range violation on 12/05/12 @ 1401.25. Confirmation of a bottom with a close violation on 11/20/12 @ 1386.25. Upside Targets = 1404.00 – 1420.00.
  • OVB generated on Wednesday. Confirmation of a top with a range violation @ 1401.25.
  • The December S&Ps finally cracked the 1400 floor in the market on Wednesday but came firing back no sooner than that level had been breached as the market remains very volatile as projected in this Monday’s report.
  • While the S&Ps have failed to close below 1400 in six sessions, this market has yet to find the necessary strength indicative of a sustainable rally that would propel the S&P’s above the November highs and still carries a high level of risk for a technical breakdown.
  • Projected Daily Range: 15.75
  • Projected Weekly Range: 43.25
  • Projected Monthly Range: 81.50
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