A quiet consolidatory session as copper edges a little higher once more.
Copper
Underlying technical studies continue to improve with an important cyclical bottom confirmed to be in place, though a lack of basing activity leaves the current recovery phase vulnerable to renewed bouts of weakness with further accumulation necessary ahead of a new and sustainable uptrend. Expect strong overhead resistance to now be encountered at 5,580/5,600 initially then at 5,650/70 and with oscillators suggesting this market to now be rather ‘overbought’ fresh dips are likely in the days ahead. Local support starts in and around 5,370/90 then again towards 5,240/60 with a close beneath here needed to trigger deeper losses.
Trading strategy: Remaining on sidelines for now as the corrective/consolidative phase continues.
Aluminium
The medium- to long-term downtrend structure is undisturbed, while short-term technical studies have clearly improved with a secondary bottom now confirmed to be complete. This appears capable of supporting advances closer to the 1,630/40 area in the days and weeks ahead and while interim resistance should be anticipated in and around the 1,580/90 zone, any fresh bouts of weakness should now be cushioned by supports starting in the 1,490/1,500 region with a clear and sustained break back under here needed to set up fresh challenges of the historically important 1,430/30 levels.
Trading strategy: Looking to probe the long side on dips looking for the 1,630 area.
Zinc
Medium- to long-term downtrends remain firmly in force with little evidence of a bottom yet, while short-term trends have flattened out with a fresh period of correction and reconsolidation being experienced now. 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 favored with support waiting at 1,890/1,900 initially, then at 1,760/80.
Trading strategy: Remaining on the sidelines for the time being as trends are flattening out.
Lead
Intermediate- to long-term downtrends are still firmly intact with little evidence of a bottom to this major bear cycle yet, though short-term trends continue to flatten out with prices oscillating within the confines of the past 10 weeks’ reconsolidation phase. Expect immediate rally attempts to again meet strong overhead resistance on approach to the upper boundary of this trading range in the 1,750/60 area with a clear and sustained break above here needed to signal completion of at least a secondary base. However, until/unless achieved, further choppy two-way activity is favored for the time being.
Trading strategy: With prices back into a trading range situation, remaining on the sidelines for the time being.
Nickel
Medium- to long-term downtrends are undisturbed, while short-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 starting at 12,800/12,900 then in the 13,400/13,500 area with only a clear and sustained break above here capable of improving the technical tone with a secondary bottom then becoming complete. However, until/unless achieved, further choppy two-way activity is favored for the time being with support waiting at 11,800/11,900 initially.
Trading strategy: Remaining on the sidelines for the time being as reconsolidative phase continues.
Tin
While overall technical studies remain decisively bearish with little evidence of a bottom to this major downward cycle yet, short-term trends are pointed up with the past 10 weeks’ corrective recovery continuing for the time being. Expect strong overhead resistance to be encountered at 16,100/16,200 initially, then again towards the 17,000/17,100 region with this market still vulnerable to renewed bouts of weakness in the weeks ahead. Support is now visible starting at 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
Overall technical studies remain decisively bullish with prices expected to trend towards the 1,800.0 region in the days and weeks ahead. Interim resistance should continue to be encountered on approach to the 1,760.0/65.0 area and until a clear and sustained break above here can be secured, further choppy two-way market action is likely for the time being. Supports wait at 1,690.0/95.0 initially, then again towards the more important 1,660.0/65.0 zone with only a decisive market close back under here likely to damage the underlying positive tone and trigger deeper losses.
Trading strategy: Continuing to buy dips/holding longs looking for the 1,800.0 region.
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 ahead and while interim resistance should be encountered in and around the 18.80/19.00 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.
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, June 04, 2020 | Tel: + 44 (0)7710369208 | www.cliffgreenconsultancy.com | email: cliff_green@hotmail.com