Markets settle into a fresh period of correction and reconsolidation for the time being.
Copper
The medium to longer term bearish outlook is still firmly in force and while prices are currently digesting recent losses through a combination of correction and reconsolidation, this market remains vulnerable to renewed bouts of weakness in the days and weeks ahead. Expect immediate recovery attempts to again meet strong overhead resistance on approach to the 4930/50 area with only a clear and sustained break above here capable of extending near term gains and setting up a retest of the 5180/5200 region. Supports are visible starting at 4460/80 then again towards the more important 4350/70 zone.
Trading Strategy: Monitoring current corrective phase for opportunity to re-establish shorts.
Aluminium
The medium to longer term technical outlook remains decisively bearish with prices capable of trending towards a challenge of the historically important 1430/40 region in the weeks ahead. Interim supports should be anticipated at initially 1530/40 then again towards the 1470/80 area although immediate recovery attempts are likely to be restricted to potentially sharp but probably short lived corrective bounces only for the time being. Strong overhead resistance is visible starting at 1580/90 with a sustained break above here needed to extend near term gains and set up a challenge of the 1630/40 zone.
Trading Strategy: awaiting corrective action ahead of reestablishing short positions.
Lead
While the medium to longer term bearish outlook is undisturbed with prices expected to trend lower in the weeks ahead, interim downside objectives have been fulfilled with much needed corrective and reconsolidative action is currentlyt being experienced. However, immediate recovery attempts are likely to be restricted by strong resistances waiting at initially 1750/60 then 1810/20 and in the absence of any basing activity this market remains vulnerable to renewed bouts of weakness in the days and weeks ahead. Key support is visible in and around the 1570/80 area then again towards 1490/1500.
Trading Strategy: Continuing to utilise corrective rebounds to probe the short side.
Nickel
Medium to longer term downtrends remain firmly intact and while prices have almost achieved interim downside objectives of 10500/10600, immediate recovery attempts are likely to be restricted to unsustainable corrective bounces only for the time being. Overhead resistance should be encountered starting in the 11700/11800 area with a decisive market close above here needed to trigger more serious near term gains and set up a challenge of the 12200/12300 region where better supply should then be stimulated. Note: a close beneath 10500 would confirm next targets around 10000.
Trading Strategy: With profits on shorts secured will await next signal prior to re-establishing
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 13000/13100 area with much needed corrective action currently being experienced. However, while this recovery attempt could challenge the 15000/15100 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 secured will await next correction ahead of re-establishing.
Zinc
While the medium to longer term technical outlook remains decisively bearish with lower targets anticipated in the weeks ahead, interim objectives in and around the 1760/70 area have been fulfilled with a fresh period of correction/reconsolidation currently being experienced. However, immediate recovery attempts are likely to be restricted by strong overhead resistance extending up to the 1930/40 area with only a clear and sustained break above here capable of relieving the prevailing downward pressure and extending gains closer to 2050/70 where better supply should then be uncovered.
Trading Strategy With profits on shorts now secured will await corrective bounces prior to re-establishing.
Gold
While medium term technical studies have deteriorated with interim objectives in and around the 1700.0 region having been achieved the subsequent sharp correction also looks complete for the time being with fresh tests of resistances waiting at initially 1640.0/45.0 likely in the coming sessions. A clear and sustained break above here would encourage a further challenge of the important 1700.0/05.0 region, with a close above here required to extend gains closer to the 1750.0/05.0 zone. However, the speed and extent of the past couple of days recovery suggest further volatile two-way activity is likely with support now 1530.0/35.0.
Trading Strategy: Remaining on sidelines for now awaiting clearer directional signal.
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 fulfilled 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 14.60/80 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 a retest of 11.20/40 and even 10.00/20 readable.
Trading Strategy: Utilising potentially sharp corrective bounces to probe the short side looking for 10.00 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.
Mon. 30th March 2020 Tel: + 44 (0)7710369208 www.cliffgreenconsultancy.com email: cliff_green@hotmail.com