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.
- New highs made on current move Wednesday @ 113.15.
- March Brent Crude continued higher on Wednesday to extend its gains through the October highs at $112.82 and once again close outside the daily RBB.
- Brent’s price action indicates that this move should continue higher above $115 and near the Q3 ’12 spot contract highs of $117.95.
- Projected Daily Range: 1.28
- Projected Weekly Range: 3.34
- Projected Monthly Range: 7.54
WTI Crude Oil (March ‘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.
- Bearish OVB generated on Wednesday after making new highs on the current move @ 96.92.
- March WTI Crude Oil was unable to progress through the $97 mark on Wednesday as concerns over Thursday’s storage number growing once again dropped the market to its lowest close in four sessions.
- WTI is technically overbought in the short term but should see a rebound in prices on Thursday and an eventual settle above $96 for the week.
- Projected Daily Range: 1.39
- Projected Weekly Range: 3.08
- 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.
- Inside compression day generated on Wednesday.
- March Natural Gas finished Wednesday’s session in a tight trading range after continually logging higher intraday lows and lower intraday highs ahead of Thursday’s storage report.
- While the northeast experiences extreme cold weather and heightens the prospect of higher natural gas prices over the short-term, Thursday will need to have a big pull to sustain the current buying support necessary to push the market higher or risk a setback to the low $3.40’s
- Projected Daily Range: .110
- Projected Weekly Range: .286
- Projected Monthly Range: .492
KMH is a trading and technical analysis firm that specializes in commodity futures and commodity based ETF’s. Kris Hicks has worked for numerous years in the commodity business and in 2011 accurately forecasted both $25 moves to the downside in May and July and the $25+ move to the upside in October in oil. He also called the all-time high day for gold on Sept. 6, 2011 and forecasted a projected downside target of 1528.10 in March 2012. He was also responsible for projecting the Q2 and Q4 low in the Euro FX to within 13 and 9 ticks, respectively. His trading methodology has a high degree of accuracy which confirms tops/bottoms, projected trading ranges and projected targets for those ranges. His expertise is focused on 16 commodities plus the comparable ETF markets. You can reach Kris at Kris@KMH-Capital.com or visit his website at www.KMH-Capital.com.About the Author
