Euro maintains bullish momentum following FOMC

Daily Market Analysis (SHORT TERM) Thursday 12/13/2012

ENERGIES

Brent Crude Oil (February ‘13):

  • Short Term Trends are bullish.
  • Confirmation of a bottom with a range violation on 12/12/12 @ 107.53. Confirmation of a bottom with a close violation on 12/12/12 @ 108.02. Upside Targets = 110.67 – 111.37
  • February Brent Crude moved significantly higher in mid-day trading on Wednesday as the announcement of further Fed easing helped push down the USD and raised most risk markets before settling considerably off the day’s high.
  • While markets initially appeared to love the move from the Fed, all eyes were back on the fiscal cliff negotiations toward the end of the day and Brent was no exception, signaling a probable “give-back” of the Wednesday’s gains on Thursday as the market remains stuck in the up-and-down trading cycle.
  • Projected Daily Range: 1.64
  • Projected Weekly Range: 4.73
  • Projected Monthly Range: 9.03

WTI Crude Oil (January ‘13):

  • Short Term Trends are bullish.
  • Confirmation of a top with a range violation on 12/05/12 @ 87.56. Confirmation of a top with a close violation on 12/06/12 @ 86.26. Downside Targets = 85.59 – 85.16.
  • Close > High Of the Low Bar generated on Wednesday.
  • January WTI Crude Oil tried to burst open higher on Wednesday following the FOMC announcement but had the same fate as other risk markets and closed just above the daily mid-range, still generating its best day in almost 2 weeks.
  • WTI’s price action indicates a retracement back lower on Thursday near $85.77 as the backing and filling continues.
  • Projected Daily Range: 1.68
  • Projected Weekly Range: 4.38
  • 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.
  • VRCB generated on Wednesday making new lows on the current move @ 3.366.
  • January Natural Gas dropped lower on Wednesday to make new lows, the current move in a compressed trading range signaling that buying support and selling pressure have begun to neutralize each other.
  • The market has shown a reduction in range volatility every day this week as it enters the support area where natural gas broke out to the upside from in late September, signaling that a turnaround should be looming heading into next week and could push as high as $3.803.
  • Projected Daily Range: .103
  • Projected Weekly Range: .287
  • Projected Monthly Range: .557
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.

Comments
comments powered by Disqus