KEY TERMS
OVB Outside Vertical Bar
VRCB Volatility Reduced Compression Bar
Brent Crude Oil (March ‘13):
- Short Term Trends are bullish.
- Confirmation of a top with a range violation on 01/11/13 @ 109.13. Confirmation of a bottom with a close violation on 12/12/12 @ 107.17. Upside Targets = 110.67 – 111.37
- March Brent Crude continued its see-sawing price action on Tuesday to reverse its close indicator to bearish as the market remains fixated around the $110 level.
- Brent has had a tough time outpacing its domestic counterpart in WTI as of late but should see a modest rise back to $110.40 in early trading on Wednesday before storage data dictates afternoon trading.
- Projected Daily Range: 1.97
- Projected Weekly Range: 3.53
- 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 dropped lower on Tuesday to close just off the session’s low despite moving through Monday’s high and against the daily RBB.
- After being oversold on intraday levels, WTI will mostly likely post a rally back to $94 before the EIA storage report.
- Projected Daily Range: 1.35
- Projected Weekly Range: 3.15
- Projected Monthly Range: 7.18
Natural Gas (February ‘13):
- Short Term trend is bearish.
- Confirmation of a bottom with a range violation on 01/14/2013 @ 3.359. Confirmation of a bottom with a close violation on 01/14/2013 @ 3.373. Upside Targets = 3.583 – 3.628.
- Bullish OVB generated on Tuesday making new highs on the current move @ 3.464.
- February Natural Gas experienced one of its most volatile trading sessions in more than a week on Tuesday, bouncing from pit-session lows to two-week highs before finally settling less than a penny off the day’s high.
- Natural gas has now reached the upper quadrant of the accumulation zone from three weeks back and will face its most serious battle for direction as it approaches a key level of $3.48-$3.52 that will determine price action for the next week.
- Projected Daily Range: .124
- Projected Weekly Range: .286
- 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 bottom with a close violation on 01/10/13 @ 1678.00. Upside Target = 1696.40 – 1725.10
- New highs made on current move Tuesday @ 1684.90.
- February Gold made new eight-session highs on Tuesday to close at is second highest level of the new year as it approaches the 40-day moving average and the current 2013 highs.
- With current stochastic values pointing sharply higher as well as strong confirmed bullish price action, gold has a legitimate shot at moving through the initial upside target and through $1,700 by week’s end.
- Projected Daily Range: 19.30
- Projected Weekly Range: 41.30
- 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 bottom with a close violation on 01/10/13 @ 1.3149. Upside Targets = 1.3414 – 1.3511.
- Close < Low of High Day generated on Tuesday.
- The March Euro FX dropped significantly lower on Tuesday due to German data released pointing to lower than expected GDP growth in 2012 at 0.7% compared with a 3% gain the year prior.
- If the euro trades and closes below Tuesday’s low it may experience a short-term setback to 1.3168 before finding firmer ground to re-launch its move higher.
- Projected Daily Range: .0107
- Projected Weekly Range: .0251
- Projected Monthly Range: .0381
E-Mini S&P (March ’13):
- Short Term Trends are bullish.
- Confirmation of a top with a range violation on 01/15/13 @ 1460.00. Confirmation of a bottom with a close violation on 12/31/12 @ 1420.00. Upside Targets = 1452.00 – 1471.50.
- The March S&Ps reversed course after the opening bell on Tuesday to eventually eradicate the overnight losses it sustained because of weaker than expected German GDP data to close in the upper 70% of the daily range while trading exactly the projected trading range mentioned in Monday evening’s report.
- This market should remain relatively range bound, as mentioned in previous reports, for the foreseeable future as it trades between 1450 and 1475.
- Projected Daily Range: 10.75
- Projected Weekly Range: 49.50
- Projected Monthly Range: 76.00
