Complex ends the week on the defensive as prices continue to experience an extended re-consolidative phase.
Copper
While underlying technical studies look to be improving with a potential bottoming process under construction, the past couple of months recovery phase still appears to be corrective action only at this stage with further accumulation needed prior to the emergence of any new and sustainable bull cycle. Expect rally attempts to again meet stiff resistance at initially 5,450/70 then again towards 5,580/5600 with values increasingly vulnerable to renewed bouts of weakness as part of this possible basing out development. Local supports start at 5,250/70 then in the more important pivotal 5,140/60 region.
Trading strategy: Remaining on sidelines for now as corrective/consolidative phase continues.
Aluminium
While medium to longer term downtrends are undisturbed with little evidence of a bottom to this major bear cycle as yet, shorter term trends have again flattened out with a fresh period of choppy reconsolidation currently being experienced. Expect immediate recovery attempts to again meet strong overhead resistance in and around the 1,530/40 area with a clear and sustained break above here needed to suggest a secondary base to be complete capable of supporting advances closer to the 1,580/90 zone where better supply should then be stimulated. Unless achieved further two-way activity is favoured with support still at 1,430/50.
Trading strategy: Remaining on the sidelines for time being awaiting next directional signal.
Zinc
While medium to longer term downtrends remain rmly 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 2,050/70 area with only a clear and sustained break above here capable of improving the underlying technical tone. Unless achieved this market remains vulnerable to renewed bouts of weakness with local supports now visible starting at 1,930/40 then again towards the pivotal 1,860/70 zone.
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, immediate weakness continues to be cushioned by support on approach to the 1,550/70 area keeping values effectively range bound for the time being. However, resistance which extends up to the 1,750/60 region should restrict rally attempts for the time being with only a clear and sustained market close above here capable of improving the underlying technical tone and triggering more serious advances with next targets then set in the 1,800/20 zone
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 on approach to the important 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 signi cant 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: With profits on shorts secured monitoring current correction ahead of re-establishing
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 1,700.0/05.0 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 1,800.0 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 17.50/70 region, immediate pullbacks are likely to be limited to corrective dips only for the time being. Local support is now visible staring at 15.40/60 then again towards the more important 14.50/70 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 17.70/18.80 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 infor-mation provided herein.
Tuesday, 26th May, 2020 Tel: + 44 (0)7710369208 | Web: www.cliffgreenconsultancy.com | Email: cliff_green@hotmail.com