KEY TERMS
OVB Outside Vertical Bar
VRCB Volatility Reduced Compression Bar
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 the current move Wednesday @ 110.48.
- February Brent Crude continues to follow through on the projections listed in the nightly reports as it moved to its highest settlement since Nov. 23.
- Brent is currently on pace to make new highs for the month by week’s end and should such an occurrence happen it will set up a target of $114.83 by the end of the year.
- Projected Daily Range: 1.67
- 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.
- New highs made on the current move Wednesday @ 90.33.
- February WTI Crude Oil traded less than $0.50 through the upside price target listed in Monday evenings report on Wednesday before impacting the daily RBB and settling just below $90.
- WTI has traded in excess of 90% of the projected weekly trading range suggesting the market may experience slight profit taking on Thursday before being able to resume any further movements higher.
- Projected Daily Range: 1.44
- Projected Weekly Range: 3.58
- Projected Monthly Range: 8.74
Natural Gas (February ‘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.
- Bearish CLOSE REVERSAL generated on Wednesday.
- February Natural Gas dropped sharply lower in overnight/early morning trading on Wednesday as it challenged the weekly lows near $3.32 before moving back to make new pit session highs in the second half day of trading.
- If natural gas is able to hold the weekly lows of $3.317 on Thursday before the storage report, any sizable draw in inventories should push this market higher heading into the weekend to a maximum weekly upside objective of $3.606.
- Projected Daily Range: .116
- 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
- Inside compression day generated on Wednesday.
- February Gold finished Wednesday’s trading session just slightly lower following Tuesday’s dramatic selloff as prices hovered within a $13 trading range while closing on the daily SBB.
- Currently the gold trade revolves solely around fiscal cliff talks and with optimism waning toward the end of Wednesday about getting a deal done before Christmas, look for gold to make new lows for the week on Thursday and challenge the lows set back on Aug. 31.
- Projected Daily Range: 22.10
- Projected Weekly Range: 40.70
- Projected Monthly Range: 94.70
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 the current move Wednesday @ 1.3321.
- The March Euro FX traded to its highest level in over eight months on Wednesday before backing off heading into the end of the session because of a possible break-down in negotiations on fiscal cliff talks.
- The euro has enjoyed a substantial rise over the last five weeks and while there should be an impending setback as the market reaches peak stochastic and rate of change levels, this market should be bought aggressively on any such setback.
- Projected Daily Range: .0086
- Projected Weekly Range: .0230
- Projected Monthly Range: .0456
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 Wednesday @ 1446.00.
- The March S&Ps gave back its early session gains on Wednesday heading into the close on rumors of a possible break-down in fiscal cliff negotiations as they dropped almost 10 points in the last few hours of trading.
- The major stock indexes have enjoyed nice gains over the last 5-6 weeks on optimism of a fiscal cliff agreement being reached and with passage of “Plan B” through the House on Thursday the market should pop higher to extend its weekly gains heading into the best seasonal trading time for the market.
- Projected Daily Range: 18.50
- Projected Weekly Range: 30.50
- Projected Monthly Range: 81.50
