Copper continues to work higher although prices appear increasingly vulnerable to correction.
Copper
Underlying technical studies continue to improve with higher targets readable in the weeks and months ahead, though the past 14 weeks’ strong recovery is beginning to look over-stretched and increasingly vulnerable to corrective pullbacks in the short term. Expect overhead resistance to be encountered at 6,120/40 initially, then at 6,230/50 with an extended period of accumulation still required for a major bull cycle to be supported. Local supports are visible starting in the 5,930/50 area then again towards 5,840/60 with a close beneath here needed to trigger more serious losses and set up a challenge of the 5,650/70 region next.
Trading strategy: Preferring the long side but awaiting potentially sharp corrective pullback ahead of buying.
Aluminium
Underlying technical studies continue to improve with at least a secondary bottom confirmed to be in place, while immediate recovery attempts should again meet strong overhead resistance in and around the 1,630/40 area with a clear and sustained break above here needed to extend gains and set up a challenge of the 1,680/90 zone where better supply should then be stimulated. Any further bouts of weakness should be cushioned by support waiting in the 1,560/70 region with a decisive market close back under here needed to trigger more serious near-term losses and signal a test of 1,520/30 where fresh demand should be uncovered.
Trading strategy: Remaining on the sidelines for the time being, awaiting next directional signal.
Zinc
Short-term trends look to have turned up with prices appearing capable of heading higher in the weeks ahead, though upward progress remains rather labored with regular corrective dips anticipated along the way. Expect immediate pullbacks to be cushioned by support, which extends down to the 1,950/60 area with only a clear and sustained break beneath here likely to threaten the improved outlook. Unless achieved further, tests of the 2,090/2,100 zone are likely in the coming days, which if decisively breached, would confirm next objectives set in the 2,190/2,200 region.
Trading strategy: Would now be preferring the long side but only on corrective pullbacks.
Lead
Intermediate trends remain rather flat with prices continuing to oscillate within the confines of a broad and rather choppy trading range. Expect immediate rally attempts to again meet strong overhead resistance starting at 1,810/20 with a clear and sustained break above here needed to generate renewed upward momentum and signal a test of the 1,900/10 region next where better supply should then be stimulated. Near-term pullbacks should be cushioned by supports waiting at 1,710/20 initially, with only a market close back under here likely to put values under more serious downward pressure.
Trading strategy: With prices back into a trading range situation, remaining on sidelines for now.
Nickel
The underlying technical outlook appears to be improving with a potential bottoming pattern appearing to be in the early stages of development. Expect immediate rally attempts to again meet stiff overhead resistance on approach to the important 13,400/13,500 area with a clear and sustained break above here needed to complete the transition to a new bull cycle and set up a challenge of the 14,400/14,500 zone next. However, until achieved, further choppy two-way activity is anticipated with local support starting at 12,400/12,500 then again towards the more important 11,800/11,900 region.
Trading strategy: Preferring the long side but only on fresh dips within developing range.
Tin
Overall technical studies remain decisively bearish with little evidence of a bottom to this major downward cycle yet, while short-term trends are pointed up with the past three months’ corrective recovery continuing for the time being. Expect strong overhead resistance to be encountered on approach to the 17,800/17,900 region with this market still vulnerable to renewed bouts of weakness in the days and weeks ahead. Support is now visible starting at 15,300 then 14,600/14,700 with a close beneath here needed to trigger deeper falls and set up a retest of the 13,100/13,200 zone.
Trading strategy: Monitoring the current corrective phase for an opportunity to re-establish shorts.
Gold
While underlying bullish patterns remain firmly in force with little evidence of a top as yet, our long-awaited objective in and around the 1,800.0 region is now being approached where strong resistance should be encountered. A fresh period of correction and/or reconsolidation could develop in the short term with local support now starting in the 1,740.0/45.0 area. A clear and sustained break beneath here could extend near-term falls closer to the more important 1,700.0/05 zone where better demand should then be stimulated. Note: a decisive market close above 1,800.0 would signal 1,825.0/30.0 next.
Trading strategy: Continuing to buy dips/holding longs looking for the 1,800.0 region. Protecting profits now under 1,740.0.
Silver
Short- to medium-term technical studies have clearly improved with prices breaking decisively to the upside from the confines of the past months’ reconsolidative pattern. The market looks capable of challenging the 19.50/70 area in the days/weeks ahead and while interim resistance should be encountered in and around the 18.30/50 region, immediate pullbacks are likely to be limited to corrective dips only for the time being. Local support is now visible at 16.50/70 then again towards the more important 15.40/60 zone with only a close back under here likely to trigger deeper near-term falls.
Trading strategy: Continue to buy dips/holding longs looking for 18.80/19.60 regions.
The data shown and the views expressed on this sheet are for information purposes only and do not constitute recommendations to trade. Cliff Green Consultancy does not accept any liability for loss or damage suffered through any actions taken or not taken as a result of reading any information provided herein.
Thursday, July 02, 2020 | Tel: + 44 (0)7710369208 | www.cliffgreenconsultancy.com | email: cliff_green@hotmail.com