KEY TERMS
OVB Outside Vertical Bar
VRCB Volatility Reduced Compression Bar
Brent Crude Oil (April ‘13):
- Short Term Trends are bullish.
- Confirmation of a bottom with a range violation on 01/15/13 @ 110.39. Confirmation of a bottom with a close violation on 12/12/12 @ 106.48. Upside Targets = 117.89 – 121.21.
- OVB generated on Thursday making new highs on current move @ 118.29.
- April Brent Crude once again inched higher in a tight trading session on Thursday, settling right at the $118 mark in what has been an underwhelming week of price action.
- Look for Friday to remain status quo heading into the weekend as Brent most likely will generate a weekly VRCB and set up for a possible decline lower next week.
- Projected Daily Range: 1.39
- Projected Weekly Range: 3.71
- Projected Monthly Range: 6.75
WTI Crude Oil (March ‘13):
- Short Term Trends are bullish.
- Confirmation of a bottom with a range violation on 02/13/13 @ 97.80. Confirmation of a top with a close violation on 02/04/13 @ 96.17. Downside Targets = 94.84 – 93.99.
- Inside VRCB generated on Thursday.
- March WTI Crude Oil moved just modestly higher on Thursday, following in the footsteps of the other components in the oil sector as it traded within less than a $1 range.
- With current Bollinger Band ranges contracting as well as a possible partial ST TREND REVERSAL to bearish with a range violation below $96.63, WTI will need to find significant strength with a strong close to avoid a possible ST setback.
- Projected Daily Range: 1.52
- Projected Weekly Range: 2.49
- Projected Monthly Range: 6.42
Natural Gas (March ‘13):
- Short Term trend is bearish.
- Confirmation of a top with a range violation on 02/14/13 @ 3.206. Confirmation of a top with a close violation on 02/08/13 @ 3.272. Downside Targets = 3.189 – 3.109.
- March Natural Gas dropped sharply lower as expected with a miss in storage pulls on Thursday as they impacted the daily SBB (Support Bollinger Band) while threatening the current contract lows.
- Natural gas is current oversold in the near-term so traders could see an initial move lower followed by a short-covering rally to end the week as cooler weather is appearing in the upcoming weather forecasts.
- Projected Daily Range: .119
- Projected Weekly Range: .206
- Projected Monthly Range: .492
