Gold gaining downside momentum, targets December lows

Daily Market Analysis (SHORT TERM) Friday 01/04/2013


KEY TERMS

OVB       Outside Vertical Bar
VRCB    Volatility Reduced Compression Bar

METALS

COMEX Gold (February ‘13):

  • Short Term Trends are bearish.
  • Confirmation of a bottom with a range violation on 12/31/12 @ 1677.90. Confirmation of a bottom with a close violation on 12/31/12 @ 1675.80. Upside Target = 1692.40 – 1716.80
  • February Gold dropped sharply lower in afternoon trading on Thursday on the heels of the FOMC report to last trade just off the session’s low.
  • Look for gold to continue the decline lower on Friday, possibly generating an outside week to the downside and negating all the positive momentum established over the past week as it seeks to retest the December lows at $1,636.
  • Projected Daily Range: 26.30
  • Projected Weekly Range: 43.60
  • Projected Monthly Range: 90.30

CURRENCIES

Euro FX (March ’13):

  • Short Term Trends are bullish.
  • Confirmation of a top with a range violation on 01/02/12 @ 1.3174. Confirmation of a top with a close violation on 12/21/12 @ 1.3187. Downside Targets = 1.3093 – 1.3036.
  • Bearish ERVB generated on Thursday making new lows on the current move @ 1.3055.
  • The March Euro FX fell sharply lower on Thursday as the USD had one of its best days against the FX currencies with the hinting of the end of the various Fed QE programs.
  • While the market may continue to see a ST setback lower, traders should look to buy aggressively if the market becomes oversold into previous levels of support near 1.29 and expect the 2012 highs to be broken during Q1 2013.
  • Projected Daily Range: .0111
  • Projected Weekly Range: .0198
  • Projected Monthly Range: .0381

INDEXES

E-Mini S&P (March ’13)

  • Short Term Trends are bullish.
  • Confirmation of a bottom with a range violation on 12/31/12 @ 1417.00. Confirmation of a bottom with a close violation on 12/31/12 @ 1420.00. Upside Targets = 1452.00 – 1471.50.
  • New highs made on current move Thursday @ 1460.50.
  • The March S&Ps once again traded outside the daily RBB on Thursday but faltered late in the session after its best New Year’s gain ever.
  • This market has been buoyed the last three sessions on the backside of a fiscal cliff deal but investors need to remember that the most pressing issue our country faces, the staggering debt, was not tended to and should be ready for a very volatile next couple of months full of partisan bickering.
  • Projected Daily Range: 24.50
  • Projected Weekly Range: 42.00
  • Projected Monthly Range: 76.00
Page 1 of 2 >>
Comments
comments powered by Disqus
Check out Futures Magazine - Polls on LockerDome on LockerDome