Complex finishes the week on a positive note as underlying technicals continue to improve.
Copper
While short term trends are clearly pointed up, the current impressive recovery phase still appears corrective in structure and poorly based hence leaving prices increasingly vulnerable to potentially sharp corrective pullbacks in the days and weeks ahead. Expect resistance to now be encountered starting at 5,730/50 then again towards the 5,820/40 zone with further basing activity required prior to the emergence of a new and sustainable bull trend. Local supports are visible at initially 5,530/50 then again towards the 5,440/60 area with a clear and sustained break beneath here needed to generate fresh downward momentum.
Trading strategy: Remaining on sidelines for now as corrective/consolidative phase continues.
Aluminium
While the longer term downtrend structure is clearly undisturbed, the shorter term technical outlook has improved with the completion of a secondary basing pattern. This is capable of supporting advances towards initially 1,630/40 and possibly 1,680/90 where renewed supply should then be encountered with a much larger accumulative pattern required if longer term bear trends are to be challenged. Nearby supports are now visible starting at 1,520/30 with a clear and sustained break beneath here needed to trigger more serious corrective pullbacks closer to the 1,480/90 region.
Trading strategy: Continuing to buy dips/holding longs looking for the 1,630 region. Protecting now under 1,520.
Zinc
While medium to longer term downtrends remain firmly in force with little evidence of a bottom as yet, shorter term trends have flattened out with a fresh period of correction and reconsolidation currently being experienced. Expect immediate rally attempts to again meet strong overhead resistance on approach to the important 2,050/70 area with a clear and sustained break above here required to improve the underlying technical tone and confirm completion of a secondary basing pattern. However, until/unless achieved further choppy two-way market activity is favoured with support waiting at 1,890/1,900 then 1,760/80.
Trading strategy: Remaining on the sidelines for the time being as trends flattening out.
Lead
While longer term downtrends are undisturbed the shorter term technical outlook appears to be improving with the past 10 weeks reconsolidative phase now confirmed to be at least a secondary bottom. This is capable of supporting advances closer to the 1,890/1,900 zone in the days and weeks ahead and while interim resistance should be encountered in and around the 1,810/20 area, immediate pullbacks should be restricted to corrective dips only for the time being. Local support starts now in the 1670/80 region with a clear and sustained break back under here needed to trigger deeper losses.
Trading strategy: Preferring the long side once more but only on corrective dips looking for 1,900 region.
Tin
While overall technical studies remain decisively bearish with little evidence of a bottom to this major downward cycle as yet, shorter term trends are pointed up with the past 10 weeks corrective recovery continuing for the time being. Expect strong overhead resistance to be encountered on approach to the 17,000/17,100 region with this market still vulnerable to renewed bouts of weakness in the days and weeks ahead. Support is now visible starting at 15300 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 current corrective phase for opportunity to re-establish shorts.
Nickel
While medium to longer term downtrends are undisturbed, shorter term trends continue to flatten out with an extended period of correction and reconsolidation currently being experienced. Expect the prevailing up-leg to again meet strong overhead resistance on approach to the important 13,400/13,500 area with a clear and sustained break above here required to confirm completion of at least a secondary bottom capable of supporting more serious gains. However, until/unless achieved further choppy two-way market activity is likely with local supports waiting at initially 11,800/11,900.
Trading strategy: Remaining on the sidelines for the time being as reconsolidative phase continues.
Gold
While underlying bullish patterns remain firmly in force with prices still expected to trend closer to the 1,800 region in the weeks ahead, shorter term trends have again flattened out with a fresh period of choppy reconsolidation currently being experienced. Expect immediate pullbacks to again be cushioned by support on approach to the 1,660.0/65.0 area with only a clear and sustained break beneath here likely to damage the positive tone and trigger deeper corrective falls. Unless achieved further choppy two-way activity is likely for the time being with nearby resistances visible starting at 1,720.0/25.0 then 1,760.0/65.0
Trading strategy: Continuing to buy dips/holding longs looking for 1800.0 region.
Silver
Short to medium term technical studies have clearly improved with prices breaking decisively to the upside form 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 staring 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: Preferring the long side now but only on corrective dips looking for 18.80/19.60 regions.
Cliff Green Consultancy 2020
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.
Monday, 8th June, 2020 Tel: + 44 (0)7710369208 | Web: www.cliffgreenconsultancy.com | Email: cliff_green@hotmail.com