A positive start to the week although prices continue to digest recent gains.
Copper
While short- to medium-term trends are clearly pointed up with little evidence of a top to this impressive four-month recovery cycle as yet, objectives in and around the 6,630 area have been fulfilled with prices currently digesting recent gains through a combination of correction and reconsolidation. Local support should be anticipated at 6,240/60 initially, then again towards 6,070/90 with only a loss of the pivotal 5,980/6,000 area likely to damage the positive tone and trigger more serious losses. Any fresh rally attempts should meet strong resistance at 6,620/40 with a close above here needed to regenerate upward momentum.
Trading strategy: Continuing to utilize corrective dips to buy looking for 6,630/6,740. Protecting now under 6,230.
Aluminium
Underlying technical studies have clearly improved with an important cyclical low confirmed to have been completed during April and May, while initial upside objectives have been fulfilled with a fresh period of correction and reconsolidation currently being experienced. Expect good underlying support to be uncovered starting in the 1,640/50 area then again towards the more important 1,600/10 zone with only a market close beneath here likely to trigger more serious losses. Overhead resistance remains in place around 1,700/10 with a clear and sustained break above here needed to regenerate upward momentum.
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. 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 2,130/40 then again towards the more important 2,050/60 region with only a clear and sustained break back under here likely to damage the improved tone.
Trading strategy: Continuing to probe the long side on corrective pullbacks/holding longs looking for 2,270 then 2,450.
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 1,800/10 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 now 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 resistances should be encountered at 1,820.0/25.0 initially, then in the 1,850.0/55.0 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 1,785.0/90.0 then again towards the 1,740.0/45.0 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 1,892.0 region Protecting profits now under 1,770.0.
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 20.20 then 21.00 areas in the days/weeks ahead with immediate pullbacks likely to be restricted to potentially sharp but probably short-lived corrective dips only for the time being. Local support should now be uncovered starting at 18.60/80 then again towards the more important 16.90/17.10 zone with only a clear and sustained break back under here likely to damage the positive tone.
Trading strategy: Continue to buy dips/holding longs looking for the 19.60 region.
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.
Tuesday, July 21, 2020 | Tel: + 44 (0)7710369208 | www.cliffgreenconsultancy.com | email: cliff_green@hotmail.com