A corrective phase continues for time being although prices increasingly vulnerable to renewed weakness.
Copper
While short term uptrends remain intact the past month’s strong recovery still appears to have been poorly based corrective action only and hence unlikely to prove sustainable. Expect overhead resistances waiting now at initially 5,230/50 then 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 5,070/90 area, which if decisively breached would trigger acceleration towards initially 4,900/20 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 initially 4,750 area .
Aluminium
While the overall bearish outlook is undisturbed with little evidence of a bottom to this major downward cycle as yet, good support looks to have been uncovered on approach to the historically important 1,430/50 area with much needed corrective action currently being
experienced. 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 pro ts on shorts secured will monitor corrective rebounds for opportunity to re-establish.
Zinc
While intermediate to longer term downtrends remain rmly intact, interim downside objectives have been ful lled with much needed corrective and reconsolidative action currently being experienced. However, in the absence of any signi cant basing activity immediate recovery attempts are likely to prove unsustainable with strong overhead resistances waiting at initially 1,970/80 then 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 for time being.
Lead
While intermediate to longer term technical studies remain clearly negative with lower targets still possible, interim objectives have been ful lled with a fresh period of correction and reconsolidation now developing. 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. Believe local support in the 1,630/40 area could come under fresh examination in the coming sessions, which if decisively breached would regenerate downward momentum and set up retest of the more important 1,570/80 region where better demand should then be stimulated.
Trading strategy: Continuing to utilise corrective rebounds to probe the short side.
Nickel
While the overall bearish outlook remains rmly in force with little evidence of any bottom to this major downward cycle as yet, shorter term trends look to be flattening out with recent falls being digested through a combination of correction and reconsolidation. Strong overhead resistances waiting at initially 12,200/12,300 then 12,900/13,000 should restrict upward progress and unless this upper boundary can be decisively broken this market remains vulnerable to renewed bouts of weakness in the days and weeks ahead. Local support is now anticipated at initially 11,300/11,400 then 10,800/10,900.
Trading strategy: Monitoring the current corrective bounce for opportunity to re-establish shorts.
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 15,900/16,000 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 pro ts on shorts secured monitoring current correction ahead of re-establishing.
Gold
Medium to longer term bullish patterns remain rmly 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.
Silver
While 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 ful lled with sharp corrective action currently being experienced. However, this appears poorly based and hence unlikely to prove sustainable at this stage with strong overhead resistances waiting at initially 16.00/20 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 initially 14.50/70 then 13.70/90.
Trading strategy: Monitoring current sharp corrective bounce for opportunity to re-establish shorts.
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 suffered through any actions taken or not taken as a result of reading any infor-mation provided herein.
Monday, 20th April, 2020 Tel: + 44 (0)7710369208 | Web: www.cliffgreenconsultancy.com | Email: cliff_green@hotmail.com