Copper
While the overall bearish outlook is still firmly intact with little evidence of a bottom yet, this week’s heavy falls have almost achieved their next objectives in the 4,300 area. This has taken oscillators into the ‘oversold’ territory and hence left prices vulnerable to fresh corrective and/or reconsolidative action in the shorter term with nearest resistances now visible starting at 4,980/5,000 then again towards 5,180/5,200. However, recoveries are likely to be restricted to short lived bounces only for the time being with an extended period of basing now required prior to sustainable rallies being secured.
Trading strategy: Having taken profits on shorts now looking for corrective bounces prior to re-establishing.
Aluminium
Medium- to long-term downtrends remain firmly in force with little evidence of any bottom to this well-established bear cycle. With the interim objectives in and around the 1,590 area now been achieved, support should be anticipated and at least a pause for breath experienced. However, immediate recovery attempts should be limited to short lived corrective bounces only for the time being with strong overhead resistance now visible starting in the 1,650/60 zone with only a clear and sustained break above here capable of extending near term gains closer to the 1,700/10 region.
Trading strategy: With profits on shorts secured would remain on the sidelines for time being.
Zinc
Intermediate- to long-term bear trends remain firmly in force and while interim supports should be anticipated at initially 1,760/70 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.
Lead
The medium- to long-term trend structure is clearly pointed down with completed topping patterns capable of pushing values generally lower in the coming weeks. However, interim targets in and around the 1,550 area have almost been achieved with this market looking vulnerable to potentially sharp corrective rebounds in the short term. These are likely to prove short-lived with strong overhead resistances waiting now at initially 1,740/50 then again towards the 1,810/20 zone with a clear and sustained break above here needed to relieve the prevailing downward pressure.
Trading Strategy: With trends having turned down would continue probing the short side on corrective bounces.
Nickel
Intermediate- to long-term technical studies remain clearly bearish with prices expected to head towards the 10,400/10,500 region in the days ahead. Interim support should now be anticipated in and around the 10,900/11,000 area although immediate recovery attempts are likely to remain restricted to potentially sharp but unsustainable corrective rebounds only for the time being. Overhead resistances are now anticipated starting in the 12,200/12,300 zone then again towards the more important 12,800/12,900 levels where better supply should then be stimulated. Only a close above here would improve the tone.
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 have achieved the next important downside objectives in and around 13,000 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 initially at 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.
Gold
Short- to medium-term trends have turned down with an important top confirmed to be in place. Initial downside objectives in and around the 1,445.0/50.0 area have been fulfilled with a fresh period of correction and reconsolidation currently being experienced. However, strong overhead resistances waiting at initially 1,565.0/70.0 then 1,600.0/05.0 should restrict immediate upside potential with a period of rebuilding/basing now clearly required prior to sustainable rallies being achieved. Note: a clear and sustained break beneath the 1445.0/50.0 zone could extend losses closer to the 1400.0/05.0 region.
Trading strategy: Remaining on sidelines for now awaiting corrective bounce to consider probing short side.
Silver
Intermediate- to long-term trends are down and with further layers of historically important supports having now been decisively broken falls closer to the 10.00/20 region are now likely. Interim demand should be uncovered in and around the 11.20/40 area although immediate recovery attempts should now be restricted to potentially sharp but probably short-lived corrective rebounds only for the time being. Strong overhead resistances should now be encountered starting in the 14.40/60 then 1,600/20 zones with only a period of re-accumulation capable of improving the underlying tone.
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.
Monday, March 23, 2020 Tel: + 44 (0)7710369208 – www.cliffgreenconsultancy.com – email: cliff_green@hotmail.com