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 01/08/13 @ 111.79. Confirmation of a bottom with a close violation on 12/12/12 @ 108.02. Upside Targets = 110.67 – 111.37
- February Brent Crude finished the session slightly lower after rebounding in the second half of the day following a build of inventories while closing just below $112.
- Look for Brent to move toward new weekly highs on Thursday as the market looks to extend its recent gains and eventually break through the Q4 ’12 highs.
- Projected Daily Range: 1.21
- Projected Weekly Range: 3.33
- Projected Monthly Range: 7.54
WTI Crude Oil (February ‘13):
- Short Term Trends are bullish.
- Confirmation of a bottom with a range violation on 01/08/13 @ 93.36. Confirmation of a bottom with a close violation on 12/18/12 @ 88.40. Upside Targets = 96.36 – 97.57.
- February WTI Crude Oil finished nearly unchanged on Wednesday in a very tight trading range after a smaller than expected build in inventories brought market back higher in the second half of trading.
- Look for WTI to follow the same path as Brent on Thursday and make new weekly highs as it goes after the upside objective of $96.36.
- Projected Daily Range: 1.51
- Projected Weekly Range: 3.74
- Projected Monthly Range: 7.18
Natural Gas (February ‘13):
- Short Term trend is bearish.
- Confirmation of a top with a range violation on 12/26/12 @ 3.362. Confirmation of a top with a close violation on 01/02/13 @ 3.315. Downside Targets = 3.102 – 3.055.
- February Natural Gas sank lower again on Wednesday to generate new contract closing lows as it tore through the intraday support below $3.16.
- Look for an early morning short-covering rally to begin Thursday followed by trader’s reaction to the 9:30 CST EIA storage report in which estimates are for the largest draw of the season.
- Projected Daily Range: .111
- Projected Weekly Range: .274
- Projected Monthly Range: .492
METALS
COMEX Gold (February ‘13):
- Short Term Trends are bearish.
- Confirmation of a bottom with a range violation on 01/09/13 @ 1664.60. Confirmation of a top with a close violation on 01/04/13 @ 1648.90. Downside Target = 1625.70 – 1611.90.
- February Gold dropped lower to finish Wednesday’s session after initially making new four-day highs in what turned out to be a tight trading session.
- Look for gold to continue to slowly work its way higher throughout the remainder of the week and eventually track down the current 2013 highs to move above $1,700.
- Projected Daily Range: 17.00
- Projected Weekly Range: 52.00
- Projected Monthly Range: 90.30
Euro FX (March ’13):
- Short Term Trends are bullish.
- Confirmation of a bottom with a range violation on 01/08/12 @ 1.3129. Confirmation of a top with a close violation on 12/21/12 @ 1.3187. Downside Targets = 1.3093 – 1.3036.
- VRCB generated on Wednesday.
- The March Euro FX closed below Tuesday’s low in a compressed trading range as it failed to gather much momentum above 1.31 as projected in Tuesday evening’s report.
- Look for the euro to drop lower over the coming weeks towards the Q1 projected low of 1.2750.
- Projected Daily Range: .0082
- Projected Weekly Range: .0193
- Projected Monthly Range: .0381
E-Mini S&P (March ’13):
- Short Term Trends are bullish.
- Confirmation of a top with a range violation on 01/08/13 @ 1450.50. Confirmation of a bottom with a close violation on 12/31/12 @ 1420.00. Upside Targets = 1452.00 – 1471.50.
- VRCB generated on Wednesday.
- The March S&Ps moved back higher on Wednesday in another tight trading day as they remained within the close cluster pattern.
- The S&Ps should break through to new contract highs on Thursday and target 1470.25 by the end of the week.
- Projected Daily Range: 14.25
- Projected Weekly Range: 59.25
- Projected Monthly Range: 76.00
