A rather nervous end to the week as the recent gains look vulnerable to correction.
Copper
While underlying technical studies continue to improve with a major cyclical bottom confirmed to be in place, the past 3 months strong recovery still appears poorly based with further accumulative action needed prior to the emergence of a sustainable bull trend. Hence, this market remains increasingly vulnerable to potentially sharp corrective weakness in the coming days with overhead resistance now visible at initially 5920/40 then 6010/30. Nearby supports are waiting now starting at 5620/40 then 5440/60 with a clear and sustained break back under here likely to trigger more serious near term losses.
Trading Strategy: Preferring the long side but awaiting potentially sharp corrective pullback ahead of buying
Aluminium
While long term downtrends are still clearly intact, shorter term technical studies have clearly improved with a secondary basing patten confirmed to be in place. However, initial upside objectives in the 1630/40 area have now been fulfilled with the past month’s strong gains now looking in need of correction and/or reconsolidation. Expect local support waiting in the 1580/90 zone to come under serious examination in the coming sessions, which if decisively broken would trigger deeper near term falls and set up a challenge of the 1520/30 region where better demand should then be stimulated. Resistance remains at 1630/40.
Trading Strategy: Profits secured on longs with objectives achieved. Remaining on sidelines for time being
Zinc
While medium to longer term downtrends remain firmly in force with little evidence of a bottom as yet, shorter term trends have flattened out with a fresh period of correction and reconsolidation currently being experienced. Expect immediate rally attempts to again meet strong overhead resistance on approach to the important 2050/70 area with a clear and sustained break above here required to improve the underlying technical tone and confirm completion of a secondary basing pattern. However, until/unless achieved further choppy two-way market activity is favoured with support waiting at 1890/1900 then 1760/80.
Trading Strategy: Remaining on the sidelines for the time being as trends flattening out.
Lead
Short to medium term trends look to have again flattened out with the inability of prices to capitalise upon the break of key overhead resistance levels keeping prices range bound for the time being. Expect imemdiate weakness to again uncover good support at initially 1680/90 then 1610/20 with further choppy two-way market activity likely for now. Supply should again be uncovered starting in the 1780/90 zone with a clear and sustained break above here needed to trigger more serious near term gains and set values on courtse to challenge the 1840/50 region.
Trading Strategy: With prices back into a trading range situation remaining on sidelines for now.
Nickel
While medium to longer term downtrends are undisturbed, shorter term trends continue to flatten out with an extended period of correction and reconsolidation currently being experienced. Expect the prevailing up-leg to again meet strong overhead resistance on approach to the important 13400/13500 area with a clear and sustained break above here required to confirm completion of at least a secondary bottom capable of supporting more serious gains. However, until/unless achieved further choppy two-way market activity is likely with local supports waiting at initially 11800/11900.
Trading Strategy: Remaining on the sidelines for the time being as reconsolidative phase continues.
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 10 weeks 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
While underlying bullish patterns remain firmly in force with prices still expected to trend closer to the 1800 region in the weeks ahead, shorter term trends have again flattened out with a fresh period of choppy reconsolidation currently being experienced. Expect immediate rally attempts to again meets strong resistance at initially 1740.0/45.0 then in the more important 1760.0/65.0 zone with a clear and sustained break above here needed to regenerate upward momentum. Until/unless achieved further twoway activity is favoured with key support visible in and around the 1660.0/65.0 area.
Trading Strategy: Continuing to buy dips/holding longs looking for 1800.0 region
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 18.30/50 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: Preferring the long side now but only on corrective dips looking for 18.80/19.60 regions.
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. 15th June 2020 Tel: + 44 (0)7710369208 – www.cliffgreenconsultancy.com – email: cliff_green@hotmail.com