Aluminium outlook improves as secondary bottom confirmed to be in place.
Copper
While underlying technical studies look to be improving with a potential bottoming pattern appearing to be under construction, further two-way market activity is favoured for the time being as this accumulative process continues. Expect immediate rally attempts to again meet stiff resistance in the 5,450/70 area and while a clear and sustained break above here could extend near term gains towards the 5,580/5,600 region, this market remains vulnerable to fresh bouts of weakness. Key local support waits at 5,240/60 with a close beneath here needed to generate renewed downward momentum towards initially 5,140/60.
Trading strategy: Remaining on sidelines for now as corrective/consolidative phase continues.
Aluminium
While the medium to longer term downtrend structure is undisturbed, shorter 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 1630 area.
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 re-consolidation 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 con rm 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 intermediate to longer term downtrends are still rmly intact with liitle evidence of a bottom to this major bear cycle as yet, shorter 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 starting at 1,700/10 then again towards the upper boundary of this sideways pattern at 1,750/60. A clear and sustained break above here is needed to suggest at least a secondary bottom to be complete and until/unless this can be achieved further two-way action likely.
Trading strategy: With prices back into a trading range situation remaining on the sidelines for the time being.
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 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 technical tone with a secondary bottom then becoming complete. However, until/unless achieved further choppy two-way activity is favoured for the time being with support waiting at initially 11,800/11,900.
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 as yet, prices look to have uncovered good support on approach to the historically important 13,000/13,100 area with much needed corrective action currently being experienced. However, in the absence of any significant basing activity, recovery attempts are likely to prove unsustainable at this stage with strong resistance anticipated at initially 15,600/15,700 then again towards the 17,000/17,100 region with prices remaining vulnerable to renewed bouts of weakness. Support now at 14,000/14,100.
Trading strategy: Monitoring current corrective phase for 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. While interim resistance should again be encountered in and around the 1,760.0/65.0 area, immediate pullbacks are likely to be restricted to potentially sharp but probably short lived corrective action only for the time being. Local support should now be anticipated on approach to the 1,690.0/95.0 zone then again towards the more important 1,660.0/65.0 level where better demand should then be stimulated. Only a close beneath here would damage the tone.
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 con nes of the past months reconsolidative pattern. The market looks capable of challenging the 18.80/19.00 area in the days ahead and while interim resistance should be encountered in and around the 17.80/18.00 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 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 suff ered through any actions taken or not taken as a result of reading any information provided herein.
Monday, 01st June, 2020 Tel: + 44 (0)7710369208 | Web: www.cliffgreenconsultancy.com | Email: cliff_green@hotmail.com