OSB Daily Technical Analysis for December 31, 2014

Gold rallied on Tuesday breaking above the $1200 handle ending the session just beneath the 50 DMA. Resistance above is significant with the $1210-20 area likely to entice bears to step in and add to short positions. Liquidity and low volume days attenuate volatility. Wider swings in the next couple of sessions until the markets are back in full swing.

 

Silver rallied in the day capping gains to 3.15%. Over outlook for Silver is bearish and short term rallies on low volumes tend to distort overall picture. Silver still within recent consolidation range at $15.50-$16.50.

 

Copper rallied briefly breaking above the $2.85 handle suggesting a further extension to price in the 2.8750 area where resistance appears significant. It is not until we break above the $2.90 area that we might expect to see any sustained move to the upside in Copper. Overall sentiment remains significantly bearish.

 

Crude Oil made a new low on Tuesday but managed to garner some momentum to rally back above the $54.00 handle. Crude is well supported in the $52.50 area and likely to retest this level. A break below signals further downside with the $50.00 target becoming realistic.

 

Natural Gas broke down again as it continues to hover above the $3.00 handle. Any upside in NG likely to be short lived and faded by bears. A break below $3.00 finds support at $2.80 area.

 

 

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