A positive session as a volatile re-consolidative phase continues for the time being.
Copper
While underlying technical studies have clearly improved with prices looking capable of trending higher in the weeks ahead, immediate rally attempts continue to meet strong resistance on approach to the 6,620/40 area with a period of choppy reconsolidation being experienced now. A market close above here is required to regenerate upward momentum and confirm next objectives in the 6730/50 zone and until/unless achieved, further two-way activity is anticipated. Key local support is visible at 6,290/6,310 with a clear and sustained break beneath here needed to trigger more serious near-term losses.
Trading strategy: With profits on longs now secured, will await fresh correction/break to the upside to re-establish.
Aluminium
Underlying technical studies continue to improve with completed basing formations capable of supporting higher targets in the weeks ahead. Immediate pullbacks should be restricted to corrective dips only for the time being and with good support having been uncovered in and around the 1,640/50 area, prices now look capable of retesting the 1,700/10 zone in the coming sessions. A clear and sustained break above here would signal acceleration towards the next objective set in the 1,750/60 region. Only a decisive market close beneath 1,640/50 would trigger deeper near-term falls closer to the 1,600/10 levels.
Trading strategy: Continuing to buy dips/holding longs looking for a test of the 1,750 region. Stops under 1,640.
Zinc
The underlying technical outlook continues to improve with increasing technical evidence suggesting an important cyclical bottom to have now been established. Prices could trend towards the 2,450 area in the weeks ahead and while interim resistance should be encountered at 2,270/80 then 2,350/60, any fresh dips are likely to be restricted to short-term corrective pullbacks only for the time being. Good underlying supports are now visible starting at 2,150/60 with only a clear and sustained break beneath here likely to trigger deeper near-term falls and set up a test of the 2,050/60 region.
Trading strategy: Continuing to probe the long side on corrective pullbacks/holding longs. Protecting now under 2,150.
Lead
The short- to medium-term technical outlook continues to improve with at 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 1,900/10 area, which, if decisively breached, would signal acceleration towards next targets in the more important 2,030/40 region where better resistance should then be encountered. Any fresh corrective dips should now uncover good support on approach to the 1,790/1,800 then 1,740/50 zones with a clear and sustained break beneath here needed to trigger deeper near-term falls.
Trading strategy: With a base now confirmed, would be continuing to utilize corrective dips to probe the long side.
Nickel
Underlying technical studies continue to improve with an important cyclical bottom appearing to be in place. Prices could now head towards the 14,400/14,500 area in the weeks ahead and while interim resistance should be encountered in and around the 13,800/13,900 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 12,400/12,500 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 the 14,400 area initially.
Tin
While overall bearish patterns are undisturbed with the current strength still considered to be corrective action only, important resistance in and around the 17,800/17,900 area is currently under renewed examination. A clear and sustained break above here would certainly improve underlying technical studies and signal moves closer to the 18,500/18,600 zone prior to better supply being stimulated. However, further failure to break this level would keep downtrends alive and leave prices vulnerable to renewed bouts of weakness with local support now visible starting at 16,500/16,600 then 15,300/15,400.
Trading strategy: Remaining on sidelines for now, monitoring the current test of pivotal resistance.
Gold
Underlying technical studies remain decisively bullish with prices now accelerating towards the area of the historic peaks in and around the 1,920.0/25.0 area where resistance should then be uncovered. While a clear and sustained break above here would signal moves closer to the 1,950.0/55.0 region, the speed and extent of recent gains is leaving this market increasingly vulnerable to potentially sharp, but probably short-lived, corrective pullbacks in the short-term. Local supports are now visible starting at 1,840.0/45.0 then 1,990.0/95.0 with only a close beneath here likely to trigger deeper losses.
Trading strategy: Continuing to buy dips/holding longs now looking for the 1,920.0 region. Protecting profits now under 1,840.0.
Silver
Underlying technical studies remain decisively bullish with completed basing patterns capable of supporting higher prices in the coming weeks. However, prices are now approaching initial objectives in and around the historically important 23.00/20 area where strong resistance should be encountered with the speed and extent of recent impressive gains leaving this market vulnerable to potentially sharp corrective pullbacks. Supports are now visible starting at 21.00/20 then again towards the more important 19.80/20.00 zone with only a close beneath here likely to trigger deeper near-term losses.
Trading strategy: Taking profits on longs as prices look increasingly vulnerable to sharp corrective pullbacks.
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.
Friday, July 24, 2020 | Tel: + 44 (0)7710369208 | www.cliffgreenconsultancy.com | email: cliff_green@hotmail.com