Down another $3 today, oil looks like it will at least test its low of $33.87 on December 12th. If it fails to hold that support level, $30/barrel is the next stop. From our trading range charts below, oil and natural gas are the commodities closest to oversold levels. Most other commodities are trading closer to overbought levels, although they have pulled back slightly over the past few days. Coffee is actually the most overbought commodity at the moment, and it just broke out of a multi-month trading range.
Recently, we highlighted that the ratios of gold to silver and gold to platinum had gotten out of whack, with gold outperforming. However, these ratios have just started to move slightly back inline, as silver and platinum have outperformed gold over the past couple of weeks. The trend will need to continue for some time, however, for silver and platinum to trade back to their average historical ratios with gold.
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