Gold collapse does technical damage, could snap back

Daily Market Analysis (SHORT TERM) Wednesday 12/19/2012

KEY TERMS

OVB       Outside Vertical Bar
VRCB    Volatility Reduced Compression Bar

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
  • New highs made on current move Tuesday @ 108.98.
  • February Brent Crude gapped higher on Tuesday and continued on to new nine-session highs before stopping just shy of $109 on continued optimism over a fiscal cliff deal and an S&P upgrade of Greece’s debt.
  • Brent has managed to close higher in five of the last seven trading sessions and although it is trading in significantly reduced daily ranges, look for the bull streak to continue towards the weekly upside objective of $111.39.
  • Projected Daily Range: 1.61
  • Projected Weekly Range: 4.29
  • Projected Monthly Range: 9.03

WTI Crude Oil (February ‘13):

  • Short Term Trends are bullish.
  • Confirmation of a bottom with a range violation on 12/18/12 @ 88.21. Confirmation of a bottom with a close violation on 12/18/12 @ 88.40. Upside Targets = 90.10 – 90.68.
  • February WTI Crude Oil broke through last week’s high on Tuesday and confirmed a ST bottom in the market setting up for a move back to the upper echelon of the trend channel established over the past six weeks.
  • Look for WTI to trade mildly higher on Wednesday ahead of the storage report and target $89.23 by session’s end.
  • Projected Daily Range: 1.39
  • Projected Weekly Range: 3.58
  • Projected Monthly Range: 8.74

Natural Gas (January ‘13):

  • Short Term trend is bearish.
  • Confirmation of a bottom with a range violation on 12/18/2012 @ 3.396. Confirmation of a bottom with a close violation on 12/18/2012 @ 3.418. Upside Targets = 3.549 – 3.631.
  • January Natural Gas crept higher on Tuesday through the high of last Wednesday before settling back lower just above the day’s mid-range as long positions liquidated some two-day profits.
  • Natural gas needs to continue on Wednesday to new weekly highs and hold Tuesday’s low if the market is going to have a legitimate shot at cracking through $3.50 by Thursday’s storage report.
  • Projected Daily Range: .112
  • Projected Weekly Range: .287
  • Projected Monthly Range: .557

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