Natural gas approaches key price level

Daily Market Analysis (SHORT TERM) Wednesday 01/16/2013

KEY TERMS

OVB       Outside Vertical Bar
VRCB    Volatility Reduced Compression Bar

ENERGIES

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

Comments
comments powered by Disqus