A powerful end to the week as copper leads the complex higher once again.
Copper
Short to medium term trends are up and despite the lack of underlying basing activity the past 4 months impressive recovery continues for the time being. Believe upward momentum could carry prices towards a test of the 6600/20 region and while interim resistance should be encountered on approach to the 6450/70 zone, immediate pullbacks are likely to remain restricted to short lived corrective pullbacks for the time being. Local supports are now visible starting at 6450/70 then again towards 6070/90 with only a clear and sustained break back under the pivotal 5980/6000 area likely to trigger more serious losses.
Trading Strategy: Continuing to utilise corrective dips to buy looking for 6450 then 6600. Protecting under 5980.
Aluminum
The underlying technical outlook continues to improve with increasing evidence suggesting an important cyclical bottom to have been established. Believe prices could now head towards the 1735/55 area in the days and weeks ahead and while interim resistance should now be anticipated in and around the 1685/95 zone, any fresh dips are likely to be restricted to potentially sharp but unsustainable corrective pullbacks only for the time being. Supports are now visible starting in the 1600/10 region then again towards the pivotal 1680/90 level with only a close beneath here likely to trigger deeper falls.
Trading Strategy: Looking to buy dips looking for a test of the 1750 region in the weeks ahead.
Zinc
The underlying technical outlook continues to improve with increasing technical evidence suggesting an important cyclical bottom to have now been established. Believe prices could now trend towards the 2260/70 area and while interim resistance should be encountered in and around the 2190/2200 zone, any fresh dips are likely to be restricted to shorter term corrective pullbacks only for the time being. Good underlying supports are now visible starting at 2050/60 then again towards the more important 2000/10 region with only a clear and sustained break back under here likely to damage the improved tone.
Trading Strategy: Continuing to probe the long side on corrective pullbacks/holding longs looking for 2270 region.
Lead
The short to medium term technical outlook continues to improve with a least a secondary bottom confirmed to be in place with prices expected to head higher in the days/weeks ahead. Initial objectives are set in and around the 1900/10 area which if decisively breached would signal acceleartion towards next targets in the more important 2030/40 region where better resistance should then be encountered. Any fresh corrective dips should now uncover good support on approach to the 1740/50 zone with a clear and sustained break beneath here needed to trigger deeper near term falls.
Trading Strategy: With a base now confirmed would be looking to utilise corrective dips to probe the long side
Nickel
Underlying technical studies continue to improve with an important cyclical bottom now appearing to be in place. Believe prices could now head towards the 14400/14500 area in the weeks ahead and while interim resistance should be encountered in and around the 13800/13900 zone any fresh dips are now likely to be restricted to corrective pullbacks only for the time being. Key local support remains in place on approach to the 12400/12500 region with only a clear and sustained break back under here likely to damage the improving technical outlook.
Trading Strategy: Continuing to probe the long side on corrective dips/holding longs looking for initially 14400 area.
Tin
While overall technical studies remain decisively bearish with little evidence of a bottom to this major downward cycle as yet, shorter term trends are pointed up with the past 4 months corrective recovery continuing for the time being. Expect strong overhead resistance to be encountered on approach to the 17800/17900 region with this market still vulnerable to renewed bouts of weakness in the days and weeks ahead. Support is now visible starting at 15300 then 14600/14700 with a close beneath here needed to trigger deeper falls and set up a retest of the 13100/13200 zone.
Trading Strategy: Monitoring current corrective phase for opportunity to re-establish shorts.
Gold
Underlying technical studies remain decisively bullish with prices appearing capable of now heading towards a fresh challenge of the historic peaks in and around the 1920 region in the weeks ahead. While interim resistances should be encountered at initially 1825.0/30.0 then in the 1850.0/55.0 zone any fresh dips are likely to be restricted to potentially sharp but probably short lived corrective pullbacks only for the time being. Supports are now visible starting at 1770.0/75.0 the again towards the 1740.0/45.0 area with only a clear and sustained break back under here likely to trigger deeper falls.
Trading Strategy: Continuing to buy dips/holding longs now looking for 1892.0 region Protecting profits now under 1770.0.
Silver
Short to medium term technical studies have clearly improved with prices breaking decisively to the upside form the confines of the past months reconsolidative pattern. The market looks capable of challenging the 19.50/70 area in the days/weeks ahead and while interim resistance should be encountered in and around the 18.80/19.00 region, immediate pullbacks are likely to be limited to corrective dips only for the time being. Local support is now visible staring at 16.50/70 then again towards the more important 15.40/60 zone with only a close back under here likely to trigger deeper near term falls.
Trading Strategy: Continue to buy dips/holding longs looking for 18.80/19.60 regions.
Mon. 13th July 2020 Tel: + 44 (0)7710369208 – www.cliffgreenconsultancy.com – email: cliff_green@hotmail.com