Copper experiences a much-needed correction as prices benefit from lack of nearby resistance.
The prevailing bearish outlook remains firmly in force with little evidence of a bottom to this major downward cycle. Important interim objectives in the 4,300 area have almost been achieved with much needed corrective action currently being experienced. However, this is likely to prove sharp but probably short-lived with strong resistances waiting at 4,930/50 initially, then again towards the 5,180/5,200 region. In the absence of any significant basing activity, this market remains vulnerable to renewed bouts of weakness. Supports are now visible starting at 4,460/80 then in the 4,350/70 zone.
Trading strategy: Having taken profits on shorts, now looking to re-establish on corrective bounces.
Intermediate- to long-term bearish patterns remain firmly intact with a retest of the historically important 1,430/40 area now possible in the weeks ahead. However, interim supports should be anticipated at 1,530/40 initially, then at 1,470/80 although immediate recovery attempts should be restricted to potentially sharp but probably short-lived corrective bounces only for the time being. Overhead resistances start now in and around the 1,630/40 zone with a clear and sustained break back above here needed to relieve the current downward pressure and signal more serious near-term gains closer to 1,700/10.
Trading strategy: With profits on shorts secured would remain on the sidelines for time being.
Intermediate- to long-term bear trends remain firmly in force and while interim supports should be anticipated at 1,760/70 initially, then again towards the 1,710/20 zone, immediate recovery attempts should be restricted to potentially sharp but probably short-lived corrective bounces only for the time being. Strong overhead resistance should be encountered starting in the 1,930/40 area with a clear and sustained break above here needed to extend near-term gains and set up a fresh challenge of the more important 2,050/70 region where better supply should then be stimulated.
Trading strategy: With profits on shorts now secured, will await corrective bounces prior to re-establishing.
Intermediate bearish technical studies remain clearly in force with lower targets readable. Interim objectives on approach to the 1,550 area have almost been achieved with a fresh period of correction and reconsolidation currently being experienced. Expect immediate weakness to again uncover good support in and around the 1,540/50 zone with a clear and sustained break beneath here needed to regenerate downward momentum and confirm a test of 1,490/1,500 next. Until achieved further, a choppy two-way activity is anticipated with local resistances waiting at 1,690/1,700 initially, then at 1,750/60.
Trading strategy: Would continue probing the short side of corrective bounces with trends having turned down.
Medium- to long-term downtrends remain firmly intact and while prices are now approaching next objectives in and around the 10,500 region, immediate recovery attempts are likely to be restricted to potentially sharp but probably short-lived corrective bounces only for the time being. Resistance is now anticipated starting in the 11,700/11,800 area with a clear and sustained break back above here needed to relieve the current downward pressure and trigger more serious near-term gains closer to the 12,200/12,300 zone where better supply should be stimulated. Note: A close under 10,500 would signal 10,000 next.
Trading strategy: With profits on shorts secured will await next signal prior to re-establishing.
Overall technical studies remain decisively bearish with little evidence of a bottom to this major downward cycle yet. Prices are approaching next important downside objectives in and around the 13,000 area where historically good support should be uncovered. However, immediate recovery attempts are likely to be restricted to potentially sharp but probably short-lived corrective bounces only for the time being with strong overhead resistances waiting at initially 15,000/15,100 then 16,000/16,100 with a period of basing needed ahead of sustainable rallies being secured.
Trading strategy: With profits secured will await next correction ahead of re-establishing.
While medium-term technical studies have deteriorated with interim objectives in and around the 1,700.0 region having been achieved the subsequent sharp correction looks complete for the time being with fresh tests of resistances waiting at initially 1,640.0/45.0 likely in the coming sessions. A clear and sustained break above here would encourage a further challenge of the important 1,700.0/05.0 region, with a close above here required to extend gains closer to the 1,750.0/05.0 zone. However, the speed
and extent of the past couple of days recovery suggest further volatile two-way activity is likely with support now at 1,530.0/35.0.
Trading strategy: Remaining on the sidelines for now awaiting clearer directional signal.
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 14.40/60 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 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.
Wednesday, March 25, 2020 Tel: + 44 (0)7710369208 – www.cliffgreenconsultancy.com – email: firstname.lastname@example.org