Markets back away from nearby resistances as choppy reconsolidative phase continues.
Copper
While underlying technical studies have clearly improved with prices looking capable of trending higher in the weeks ahead, immediate rally attempts continue to meet strong resistance on approach to the 6,620/40 area with a period of choppy reconsolidation currently being experienced. A market close above here is required to regenerate an upward momentum and confirm next objectives in the 6,730/50 zone and until/unless achieved, further two-way activity is anticipated. Key local support is visible at 6,290/6,310 with a clear and sustained break beneath here needed to trigger more serious near-term losses.
Trading strategy: Taking profits on any longs as further correction/consolidation now likely.
Aluminium
Underlying technical studies continue to improve with completed basing formations capable of supporting higher targets in the weeks ahead. Immediate pullbacks should be restricted to corrective dips only for the time being and with good support having been uncovered in and around the 1,640/50 area prices now look capable of retesting the 1,700/10 zone in the coming sessions. A clear and sustained break above here would signal acceleration towards the next objective set in the 1,750/60 region. Only a decisive market close beneath 1,640/50 would trigger deeper near-term falls closer to the 1,600/10 levels.
Trading strategy: Continuing to buy dips/holding longs looking for a test of the 1,750 region. Stops under 1,640.
Zinc
The underlying technical outlook continues to improve with increasing technical evidence suggesting an important cyclical bottom to have now been established. Believe prices could trend towards the 2,450 area in the weeks ahead and while interim resistance should be encountered at 2,270/80 then 2,350/60, any fresh dips are likely to be restricted to short-term corrective pullbacks only for the time being. Good underlying supports are now visible starting at 2,150/60 with only a clear and sustained break beneath here likely to trigger deeper near-term falls and set up a test of the 2,050/60 region.
Trading strategy: Continuing to probe the long side on corrective pullbacks/holding longs. Protecting now under 2,150.
Lead
The short- to medium-term technical outlook continues to improve with at least a secondary bottom confirmed to be in place with prices expected to head higher in the days/weeks ahead. Initial objectives are set in and around the 1,900/10 area, which, if decisively breached, would signal acceleration towards next targets in the more important 2,030/40 region where better resistance should then be encountered. Any fresh corrective dips should now uncover good support on approach to the 1,790/1,800 then 1,740/50 zones with a clear and sustained break beneath here needed to trigger deeper near-term falls.
Trading strategy: With a base now confirmed, would be continuing to utilize corrective dips to probe the long side.
Nickel
Underlying technical studies continue to improve with an important cyclical bottom appearing to be in place. Prices could now head towards the 14,400/14,500 area in the weeks ahead and while interim resistance should be encountered in and around the 13,800/13,900 zone, any fresh dips are now likely to be restricted to corrective pullbacks only for the time being. Key local support remains in place on approach to the 12,400/12,500 region with only a clear and sustained break back under here likely to damage the improving technical outlook.
Trading strategy: Continuing to probe the long side on corrective dips/holding longs looking for the 14,400 area initially.
Tin
While overall technical studies remain decisively bearish with little evidence of a bottom to this major downward cycle as yet, short-term trends are pointed up with the past four 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 16,000/16,100 then 15,300/15,400 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
Underlying technical studies remain decisively bullish with prices appearing capable of now heading towards a fresh challenge of the historic peaks in and around the 1,920 region in the weeks ahead. While interim resistance should be encountered in and around the 1,875.0/80.0 zone any fresh dips are likely to be restricted to potentially sharp, but probably short-lived corrective pullbacks only for the time being. Supports are now visible starting at 1,790.0/1,800.0 then again towards the 1,755.0/60.0 area with only a clear and sustained break back under here likely to trigger deeper falls.
Trading strategy: Continuing to buy dips/holding longs now looking for the 1,920.0 region. Protecting profits now under 1,810.0.
Silver
Underlying technical studies remain decisively bullish with completed basing patterns capable of supporting higher prices in the coming weeks. However, prices are now approaching initial objectives in and around the historically important 23.00/20 area where strong resistance should be encountered with the speed and extent of recent impressive gains leaving this market vulnerable to potentially sharp corrective pullbacks. Supports are now visible starting at 21.00/20 the again towards the more important 19.80/20.00 zone with only a close beneath here likely to trigger deeper near-term losses.
Trading strategy: Taking profits on longs as prices look increasingly vulnerable to sharp corrective pullbacks.
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 23, 2020 | Tel: + 44 (0)7710369208 | www.cliffgreenconsultancy.com | email: cliff_green@hotmail.com