Nickel continues its corrective rebound while others remain range bound for the time being.
Short-term uptrends remain intact but the past month’s strong recovery still appears to have been poorly based corrective action and hence unlikely to prove sustainable. Expect overhead resistances waiting at 5,230/50 initially, then at 5,320/40 to cap gains with this market looking increasingly vulnerable to renewed bouts of weakness in the coming days. Uptrend support should be uncovered now in and around the 5,080/5,100 area, which if decisively breached, would trigger acceleration towards 4,900/20 initially then the more important 4,730/50 region where better demand should then be uncovered.
Trading strategy: Would be looking to re-establish shorts on break of local support areas looking for 4,750 area initially.
The overall bearish outlook is undisturbed with little evidence of a bottom to this major downward cycle yet, though good support looks to have been uncovered on approach to the historically important 1,430/50 area with much needed corrective action being experienced now. However, anticipate strong overhead resistance to be encountered at initially 1,550/60 with only a clear and sustained break back above here capable of extending near-term gains and setting up a challenge of the 1,630/40 zone where better supply should then be stimulated. A period of accumulation is required prior to better recoveries.
Trading strategy: With profits on shorts secured will monitor corrective rebounds for opportunity to re-establish.
Intermediate- to long-term downtrends remain firmly intact, though interim downside objectives have been fulfilled with much needed corrective and reconsolidative action being experienced at present. However, in the absence of any significant basing activity immediate recovery attempts are likely to prove unsustainable with strong overhead resistances waiting at 1,970/80 initially, then at 2,050/60 likely to cap gains for the time being. This market remains vulnerable to renewed bouts of weakness in the days ahead and while local support should be uncovered in the 1,880/90 zone a break beneath here would signal 1,760/70 next.
Trading strategy: Remaining on sidelines for time being as corrective/consolidative phase continues.
Intermediate- to long-term technical studies remain clearly negative with lower targets still possible, though interim objectives have been fulfilled with a fresh period of correction and reconsolidation developing now. However, strong resistance continues to be encountered on approach to the 1,750/60 area with prices once more appearing vulnerable to renewed bouts of weakness. Local support in the 1,630/40 area could come under fresh examination, which, if decisively breached, would regenerate downward momentum and set up a retest of the important 1,570/80 region where better demand should be met.
Trading strategy: Continuing to utilize corrective rebounds to probe the short side.
The overall bearish outlook remains firmly in force with little evidence of any bottom to this major downward cycle yet, though short-term trends have turned up with a period of major corrective action being experienced now. However, strong overhead resistances waiting at 12,900/13,000 initially, then
13,400/13,500 should cap gains and unless this upper boundary can be decisively breached this market appears increasingly vulnerable to renewed bouts of weakness in the days and weeks ahead. Nearby support should now be anticipated at initially 11,400/11,500 then again towards 10,800/10,900.
Trading strategy: Monitoring the current corrective bounce for opportunity to re-establish shorts.
The overall technical studies remain decisively bearish with little evidence of a bottom to this major downward cycle yet. Prices look to have uncovered good support on approach to the historically important 13,000/13,100 area with much-needed corrective action being experienced at present. However, in the absence of any significant basing activity, recovery attempts are likely to prove unsustainable at this stage with strong resistance anticipated at 15,900/16,000 initially, 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.
Medium- to long-term bullish patterns remain firmly in force and while prevailing high levels of volatility suggest deep corrective action is likely to be an ongoing characteristic, prices are expected to trend closer to the 1,800.0 region in the weeks ahead. Interim resistance should again be encountered in and around the 1,745.0/50.0 area. Near-term pullbacks should now uncover good support starting in the 1,640.0/45.0 zone. Only a clear and sustained break beneath here would trigger more serious near-term falls and set up a fresh challenge of the more important 1,600.0/05 levels where better demand should be stimulated.
Trading strategy: Would once again look to probe the long side on corrective dips looking for 1,800.0 region.
The overall technical outlook remains clearly bearish with lower targets still readable in the weeks ahead. Interim objectives in and around the 11.20/40 area have been fulfilled with sharp corrective action being experienced at present. However, this appears poorly based and hence unlikely to prove sustainable at this stage with strong overhead resistances waiting at 16.00/20 initially, then on approach to the 16.80/17.00 zone. Unless this upper boundary can be regained, prices remain vulnerable to renewed bouts of weakness with support now waiting at 14.50/70 initially, then at 13.70/90.
Trading strategy: Monitoring current sharp corrective bounce for opportunity to re-establish shorts.
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, April 21, 2020 | Tel: + 44 (0)7710369208 | www.cliffgreenconsultancy.com | email: firstname.lastname@example.org