OSB Daily Technical Analysis for December 16, 2014

Gold sold off heavily on Monday breaking beneath the 20 and 50 DMA’s and the key $1200 level. Golds price action suggests upside is capped at the $1220-30 area for now and strong support at the $1200 level is likely to continue seeing trading in a range. A close below this area might see a new down leg in the precious metal.

 

Silver broke down on Monday giving all of last weeks gains aand closing in the lows of the day suggesting that we might be entering a new downleg in the precious metal. A break below $16.00 confirms this and extends to $15.80 in the short term.

 

Copper followed suite with the commodities complex and lost just under 2% on the day. Despite the sell-off Copper remains within its trading range. A break below $2.82 opens new downleg extending to recent lows. Limited upside potential with resistance above at $2.95.

 

Crude Oil made a new multi month low breaking into the $55.00 level. Price action suggests further downside despite Crude looking slightly oversold in the short term. Some bounce around these levels to be expected with resistance at $58.00. On the downside a break below $55.00 extends action into $52.50 area.

 

Natural Gas gave way to bears on Monday after breaking out and making an attempt to break the $4.00 resistance area. NG continus to consolidate and trade in a range for now. Overall bias is somewhat neutral with a leaning to the downside.

 

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