KEY TERMS
OVB Outside Vertical Bar
VRCB Volatility Reduced Compression Bar
Brent Crude Oil (March ‘13):
- Short Term Trends are bullish.
- Confirmation of a bottom with a range violation on 01/15/13 @ 111.23. Confirmation of a bottom with a close violation on 12/12/12 @ 107.17. Upside Targets = 117.89 – 121.21.
- VRCB generated on Thursday making new highs on current move @ 117.83.
- March Brent Crude narrowly avoided breaking through the spot highs at $117.95 made last September on Thursday as it traded within a tight range and could not sustain the momentum throughout most of the day until after the pit-session closed.
- Look for Brent to make new highs for the week on Friday and trade to the weekly upside objective of $118.27.
- Projected Daily Range: 1.56
- Projected Weekly Range: 3.26
- Projected Monthly Range: 6.75
WTI Crude Oil (March ‘13):
- Short Term Trends are bullish.
- Confirmation of a top with a range violation on 02/01/13 @ 96.83. Confirmation of a top with a close violation on 02/04/13 @ 96.17. Downside Targets = 94.84 – 93.99.
- March WTI Crude Oil was also unable to sustain an early pop higher as it dropped to close in the lower 20% of the daily trading range and below $95 for the first time in nearly two weeks.
- WTI’s inability to make a significant push lower throughout the session points the direction of Friday’s trading higher as the market looks to resume its bull run and close the spread between itself and Brent.
- Projected Daily Range: 1.59
- Projected Weekly Range: 2.61
- Projected Monthly Range: 6.42
Natural Gas (March ‘13):
- Short Term trend is bullish.
- Confirmation of a bottom with a range violation on 01/31/13 @ 3.345. Confirmation of a bottom with a close violation on 02/05/13 @ 3.399. Upside Targets = 3.535 – 3.554.
- Bearish ERVB generated on Thursday.
- March Natural Gas dropped sharply lower on Thursday as storage withdrawals badly missed expectations and the market approached the lows of the week going into the close.
- Expect for a mild short-covering rally to unfold on Friday before continued bearish momentum drops the market through to possibly four-week lows.
- Projected Daily Range: .114
- Projected Weekly Range: .250
- Projected Monthly Range: .492
