Copper challenging historically important resistance areas.

 

Copper

Short- to medium-term trends are up and despite the lack of underlying basing activity, the past four months’ impressive recovery continues for the time being. Historically important resistance in and around the 6,350/70 region is currently under close examination, which, if decisively broken, could extend gains closer to the 6,450/70 and even 6,600/20 regions ahead of better supply being stimulated. However, this market is looking rather ‘overbought’ and hence vulnerable to potentially sharp corrective pullbacks with local supports visible starting at 6,070/90 then 5,980/6,000 with a close under here needed to trigger deeper falls.

Trading strategy: Continuing to look to establish longs on potentially sharp corrective pullbacks.

 

Aluminium

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 1,735/55 area in the days and weeks ahead and while interim resistance should now be anticipated in and around the 1,685/95 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 1,600/10 region then again towards the pivotal 1,680/90 level with only a close beneath here likely to trigger deeper falls.

Trading strategy: Looking to buy dips looking for a test of the 1,750 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 2,260/70 area and while interim resistance should be encountered in and around the 2,190/2,200 zone, 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 2,050/60 then again towards the more important 2,000/10 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 looking for the 2,270 region.

 

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 1,740/50 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 utilize 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 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 pullbacks looking for the 14,400 area initially.

 

Tin

While overall technical studies remain decisively bearish with little evidence of a bottom to this major downward cycle as yet, short-term trends are pointed up with the past four months’ corrective recovery continuing for the time being. Expect strong overhead resistance to be encountered on approach to the 17,800/17,900 region with this market still vulnerable to renewed bouts of weakness in the days and weeks ahead. Support is now visible starting at 15,300 then 14,600/14,700 with a close beneath here needed to trigger deeper falls and set up a retest of the 13,100/13,200 zone.

Trading strategy: Monitoring the current corrective phase for an 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 1,920 region in the weeks ahead. While interim resistances should be encountered at 1,825.0/30.0 initially, then in the 1,850.0/55.0 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 1,770.0/75.0 then again towards the 1,740.0/45.0 area with only a clear and sustained break back under here likely to trigger deeper falls.

Trading strategy: Continuing to buy dips/holding longs looking for the 1,892.0 region. Protecting profits now under 1,770.0.

 

Silver

Short- to medium-term technical studies have clearly improved with prices breaking decisively to the upside from 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 starting 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.

 

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 10, 2020 | Tel: + 44 (0)7710369208 | www.cliffgreenconsultancy.com | email: cliff_green@hotmail.com

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