Aluminium continues its bear trend while others remain rather range bound for time being.
Copper
The main downtrend structure is undisturbed with little evidence of a bottom to this bear cycle yet. However, short-term trends have clearly flattened out with prices experiencing a fresh period of correction and reconsolidation. Expect immediate rally attempts to again be restricted by resistance in the 4,960/80 area with a clear and sustained break above here needed to extend near-term gains and set up a challenge in the 5,180/5,200 region. However, unless achieved, further choppy two-way market activity is likely with key local support waiting at 4,740/60. A close beneath here is needed to regenerate downward momentum.
Trading strategy: Monitoring current corrective phase for opportunity to re-establish shorts.
Aluminium
Overall technical studies remain clearly bearish and while this major downward cycle looks to be entering its latter stages there is little evidence of a bottom yet. The historically important 1,430/40 area could come under serious examination in the days ahead and while a sustained break beneath here would encourage further losses, good support should certainly be anticipated in this region. However, immediate recovery attempts are expected to be restricted to unsustainable corrective bounces only for the time being with an extended period of basing required prior to any substantial and sustainable advances being secured.
Trading strategy: With prices now approaching potentially good support, would take profits on any remaining shorts.
Zinc
Intermediate- to long-term downtrends remain firmly intact, but interim downside objectives have been fulfilled with much needed corrective and reconsolidative action being experienced now. Expect immediate recovery attempts to again meet strong overhead resistance in and around the 1,930/40 area with a clear and sustained break above here needed to trigger more serious near-term gains and set up a challenge in the 2,050/60 region where better supply should then be stimulated. Local supports are now visible starting at 1,820/30 then again towards the more important 1,760/70 zone.
Trading strategy: Remaining on sidelines for the time being as corrective/consolidative phase continues for time being.
Lead
Intermediate- to long-term technical studies remain clearly negative with lower targets still possible, but interim objectives have been fulfilled with a fresh period of correction and reconsolidation developing now. Expect renewed weakness to now uncover support starting in the 1,630/40 area then again towards the more important 1,570/80 zone with a clear and sustained break beneath here needed to regenerate downward momentum. However, until/unless achieved further choppy two-way activity is likely for the time being with key resistance in place at 1,750/60.
Trading strategy: Continuing to utilize corrective rebounds to probe the short side.
Nickel
The overall bearish outlook remains firmly in force with little evidence of any bottom to this major downward cycle yet, but short-term trends look to be flattening out with recent falls being digested through a combination of correction and reconsolidation. However, expect immediate recovery attempts to be restricted by resistance on approach to the 11,600/11,700 area with a clear and sustained break above here needed to trigger more serious near-term gains and set up a challenge of the 12,200/12,300 region. Unless achieved further, choppy two-way activity is favored for now with support at 10,500/10,600.
Trading strategy: With profits on shorts secured, will await next signal prior to re-establishing.
Tin
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 now. However, while this recovery attempt could challenge the 14,900/15,000 area ahead of meeting too much overhead resistance, gains are likely to prove both unsustainable and short-lived with this market still vulnerable to further bouts of weakness in the days and weeks ahead.
Trading strategy: With profits on shorts secured, will await next correction ahead of re-establishing.
Gold
Long-term bullish patterns are undisturbed with prices still capable of trending higher in the weeks ahead, but short-term trends have flattened out with a volatile period of correction and reconsolidation being experienced now. Expect immediate rally attempts to again meet strong overhead resistance in the 1,700.0/05.0 area with a clear and sustained break above here needed to regenerate an upward momentum and confirm next targets in and around the 1,735.0/40.0 zone. Local supports are now visible starting in the 1,600.0/05.0 region then again towards the more important 1,565.0/70.0 levels.
Trading strategy: Stepping back to the sidelines for the time being and awaiting clear directional signal.
Silver
The overall technical outlook remains clearly bearish with lower targets still readable in the weeks ahead, but 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 15.00/20 initially, then on approach to the 16.00/20 zone. Unless this upper boundary can be regained, prices remain vulnerable to renewed bouts of weakness with support now waiting at 13.70/90 initially, then at 12.40/60.
Trading strategy: Monitoring current sharp corrective bounce for an 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 7, 2020 | Tel: + 44 (0)7710369208 | www.cliffgreenconsultancy.com | email: cliff_green@hotmail.com