Natural gas exhibiting weakness after storage report

Daily Market Analysis (SHORT TERM) Friday 12/07/2012

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
  • February Gold was unable to close above Wednesday’s high as last night’s report projected but it did find plenty of support below $1,690 and rallied to close back above $1,700 just off the session’s highs.
  • If gold can sustain this kind of bullish price action heading into next week, the upside target of $1,743 listed in Wednesday evening’s report should trade within the next 4 sessions as gold confirms a ST trend reversing higher low.
  • Projected Daily Range: 22.20
  • 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.
  • Bearish ERVB generated on Thursday.
  • The December Euro FX dropped significantly lower on the ECB decision to leave rates unchanged and painted a grim outlook for a possible shrinking Eurozone economy.
  • The downside target that was mentioned in last night’s report of 1.2938 that was supposed to take 4-6 days to trade was nearly fulfilled in Thursday’s session alone, highlighting that the market was oversold on Thursday and should see a pop back higher on Friday with a positive US employment report.
  • Projected Daily Range: .0090
  • 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.
  • Inside VRCB generated on Thursday.
  • The December S&Ps traded within another thin session on Thursday as market volatility continues to be stuck in a day-on, day-off routine but did close at its highest level all week.
  • The S&Ps may look to take another shot at this week’s high on Friday with any positive economic data as the market struggles between both domestic and global fiscal uncertainties.
  • Projected Daily Range: 15.00
  • Projected Weekly Range: 43.25
  • Projected Monthly Range: 81.50
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About the Author
Kris Hicks

KMH is a trading and technical analysis firm that specializes in commodity futures and commodity based ETF’s. Kris Hicks has worked for numerous years 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 in oil. He also called the all-time high day for gold on Sept. 6, 2011 and forecasted a projected downside target of 1528.10 in March 2012. He was also responsible for projecting the Q2 and Q4 low in the Euro FX to within 13 and 9 ticks, respectively. His trading methodology has a high degree of accuracy which confirms tops/bottoms, projected trading ranges and projected targets for those ranges. His expertise is focused on 16 commodities plus the comparable ETF markets. You can reach Kris at Kris@KMH-Capital.com or visit his website at www.KMH-Capital.com.

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