Natural gas gains on storage report, risks profit taking

Daily Market Analysis (SHORT TERM) Friday 01/18/2013


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 was able to rally back higher on Thursday as the see-sawing trading action continued another day but did close at its third highest level in three months.
  • The current trading range for the week indicates that unless Brent trades to at least $112.37 on Friday it will generate and weekly VRCB and set the stage for the decline mentioned in Wednesday evenings report down to the $105-$106 level.
  • Projected Daily Range: 1.64
  • 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.
  • Bullish ERVB generated on Thursday making new highs on current move @ 96.04.
  • February WTI Crude Oil exploded to the upside on Thursday as it once again impacted the daily RBB and settled at its highest level in four months.
  • As the Feb contract goes into its roll to March, look for a modest decline lower after a substantial increase in price throughout the week.
  • Projected Daily Range: 1.57
  • 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.
  • New highs made on current move Thursday @ 3.529.
  • February Natural Gas rocketed higher on Thursday because of a bullish surprise in storage withdrawals as it made new three-week highs.
  • Natural gas stopped just shy of the previous confirmed top in the market to last trade significantly off the days’ high as the market reached the upper limits of the $3.48-$3.52 resistance zone mentioned in Tuesday afternoon’s report and could be in for a profit taking decline to end the week.
  • Projected Daily Range: .126
  • Projected Weekly Range: .286
  • Projected Monthly Range: .492

Page 1 of 2 >>
Comments
comments powered by Disqus
Check out Futures Magazine - Polls on LockerDome on LockerDome