Recent gains continue to be digested through a combination of correction and consolidation.
Copper
While short to medium term trends are clearly pointed up with little evidence of a top to this impressive 4 month recovery cycle as yet, objectives in and around the 6630 area have been fulfilled with prices currently digesting recent gains through a combination of correction and reconsolidation. Believe local support on approach to the 6230/50 zone could come under fresh examination, which if decisively breached could extend near term falls closer to the 6070/90 and even 5980/6000 regions ahead of better demand being stimulated. Resistance remains in place at 6620/40 with a close above here needed to set up a test of 6740.
Trading Strategy: Continuing to utilise corrective dips to buy looking for 6630/6740. Protecting now under 6230.
Aluminium
While underlying technical studies have clearly improved with an important cyclical low confirmed to have been completed during April and May, initial upside objectives have been fulfilled with a fresh period of correction and reconsolidation currently being experienced. Expect good underlying support to be uncovered starting in the 1640/50 area then again towards the more important 1600/10 zone with only a market close beneath here likely to trigger more serious losses. Overhead resistance remains in place around 1700/10 with a clear and sustained break above here needed to regenerate upward momentum.
Trading Strategy: Continuing to buy dips/holding longs looking for a test of the 1750 region. Stops under 1640.
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 2450 area and while interim resistance should be encountered at 2270/80 then 2350/60, 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 2130/40 then again towards the more important 2050/60 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 then 2450.
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 acceleration 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 1800/10 then 1740/50 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 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 16000/16100 then 15300/15400 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 1820.0/25.0 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 with immediate pullbacks likely to be restricted to potentially sharp but probably short lived corrective dips only for the time being. Local underlying support should now be uncovered starting at 18.40/60 then again towards the more important 16.90/17.10 zone with only a clear and sustained break back under here likely to damage the positive tone.
Trading Strategy:Continue to buy dips/holding longs looking for 19.60 region.
Cliff Green Consultancy 2020
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. 20th July 2020 Tel: + 44 (0)7710369208 – www.cliffgreenconsultancy.com – email: cliff_green@hotmail.com