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.
- April Brent Crude sank lower in limited trading on Monday to settle at its lowest point in a week based on a stronger USD and short term stochastic indicators beginning to turn lower.
- Look for Brent to trade slightly lower to begin the week before finding some support near $116 near the middle of the week.
- Projected Daily Range: 1.38
- Projected Weekly Range: 3.71
- Projected Monthly Range: 6.75
WTI Crude Oil (April ‘13):
- Short Term Trends are bearish.
- Confirmation of a top with a range violation on 02/15/13 @ 97.18. Confirmation of a top with a close violation on 02/15/13 @ 96.41. Downside Targets = 94.84 – 93.99.
- March WTI Crude Oil dropped sharply lower to end last week essentially where it began, giving back all of the gains from earlier in the week after reversing the short-term trend from bullish to bearish.
- Look for WTI to break through the February lows and take the entire projected monthly trading range to the downside with an objective of $92.21.
- 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 settled at its second lowest level of the year to end last week as it traded within a very tight range for most of the session while making new lows on the current move lower.
- Friday’s price action suggest that the market may be running out of new sellers at current prices and with colder weather accumulating over the past week, look for a mild pop higher in early trading this week that could possibly take the market back near the $3.25 - $3.30 range before sellers return.
- Projected Daily Range: .112
- Projected Weekly Range: .194
- Projected Monthly Range: .492
