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
METALS
COMEX Gold (February ‘13):
- Short Term Trends are bullish.
- Confirmation of a top with a range violation on 12/17/12 @ 1690.60. Confirmation of a top with a close violation on 11/28/12 @ 1718.80. Downside Target = 1707.20 – 1694.70
- Bearish EROVB generated on Tuesday making new lows on the current move @ 1662.00.
- February Gold dropped sharply lower on Tuesday after initially making new highs for the week for its largest single day decline since early November and closed below the daily SBB.
- While the gold collapse did some serious technical damage on Tuesday, this price action has the making of a possible flush out move that could snap the market back higher in the coming days.
- Projected Daily Range: 21.30
- Projected Weekly Range: 40.70
- Projected Monthly Range: 94.70
CURRENCIES
Euro FX (March ’13):
- Short Term Trends are bullish.
- Confirmation of a bottom with a range violation on 12/11/12 @ 1.2975. Confirmation of a bottom with a close violation on 12/11/12 @ 1.3004. Upside Targets = 1.3183 – 1.3245.
- New highs made on current move Tuesday @ 1.3252.
- The March Euro FX continued to advance higher on Tuesday, logging its seventh consecutive day of higher lows and closing just inside the daily RBB.
- After trading to within just six ticks of my projected Q4 downside objective (1.2674), this market continues to follow through on quarterly analysis that projects the Euro will continue higher over the coming months and break through the 2012 highs and target 1.3594.
- Projected Daily Range: .0085
- Projected Weekly Range: .0230
- Projected Monthly Range: .0456
INDEXES
E-Mini S&P (March ’13):
- Short Term Trends are bullish.
- Confirmation of a bottom with a range violation on 12/07/12 @ 1415.00. Confirmation of a bottom with a close violation on 11/20/12 @ 1386.25. Upside Targets = 1404.00 – 1420.00 – *1465.00
- New highs made on current move Tuesday @ 1443.50.
- The March S&Ps continued to trade sharply higher on Tuesday for their best two-day gain in more than a month and broke through the IT resistance trend channel to close above the daily RBB.
- The projection that this market will trade up to 1452 this week still remains steady and with politicians seemingly inching closer to a fiscal cliff deal, this market should extend its gains to the revised upside target of 1465.00.
- Projected Daily Range: 17.25
- Projected Weekly Range: 30.50
- Projected Monthly Range: 81.50
