A short-term uptrend in copper remains very much alive as prices spring back strongly.
Copper
Short-term uptrends remain firmly intact with underlying technical studies also continuing to improve, though the past 15 weeks’ strong recovery still appears poorly based and hence vulnerable to potentially sharp corrective pullbacks in the days and weeks ahead. Expect strong overhead resistance to be encountered at 6,130/50 initially, then 6,230/50 with an extended period of reaccumulation required prior to the emergence of a sustainable bull cycle. Local support is now visible starting in the 5,970/90 zone, which if decisively breached, would trigger deeper near-term falls with a test of 5,840/60 and even 5,660/80 then readable.
Trading strategy: Preferring the long side but awaiting potentially sharp corrective pullback ahead of buying.
Aluminium
Underlying technical studies continue to improve with at least a secondary bottom confirmed to be in place, while immediate recovery attempts should again meet strong overhead resistance in and around the 1,630/40 area with a clear and sustained break above here needed to extend gains and set up a challenge of the 1,680/90 zone where better supply should then be stimulated. Any further bouts of weakness should be cushioned by support waiting in the 1,560/70 region with a decisive market close back under here needed to trigger more serious near-term losses and signal a test of 1,520/30 where fresh demand should be uncovered.
Trading strategy: Remaining on the sidelines for the time being, awaiting the next directional signal.
Zinc
Short-term trends are clearly pointed up with at least a secondary bottom confirmed to be in place, while immediate rally attempts should again meet stiff overhead resistance in and around the 2,090/2,100 area with a clear and sustained break above here needed to generate fresh upward momentum and signal a test of the 2,190/2,200 region next. However, until/unless achieved, further choppy two-way market activity is likely with local support now waiting at 2,000/10 initially then in the more important 1,950/60 zone with a decisive break beneath here needed to trigger deeper losses.
Trading strategy: Continuing to probe the long side on corrective pullbacks looking for the 2,200 region.
Lead
Intermediate trends remain rather flat with prices continuing to oscillate within the confines of a broad and rather choppy trading range. Expect immediate rally attempts to again meet strong overhead resistance starting at 1,810/20 with a clear and sustained break above here needed to generate renewed upward momentum and signal a test of the 1,900/10 region next where better supply should then be stimulated. Near-term pullbacks should be cushioned by supports waiting at 1,710/20 initially with only a market close back under here likely to put values under more serious downward pressure.
Trading strategy: With prices back into a trading range situation, remaining on sidelines for now.
Nickel
The underlying technical outlook appears to be improving with a potential bottoming pattern appearing to be in the early stages of development. Expect immediate rally attempts to again meet stiff overhead resistance on approach to the important 13,400/13,500 area with a clear and sustained break above here needed to complete the transition to a new bull cycle and set up a challenge of the 14,400/14,500 zone next. However, until achieved, further choppy two-way activity is anticipated with local support visible starting at 12,400/12,500 then again towards the more important 11,800/11,900 region.
Trading strategy: Preferring the long side but only on fresh dips within developing range.
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 three 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 bullish patterns remain firmly in force with little evidence of a top as yet, while our long-awaited objective in and around the 1,800.0 region is now being approached where strong resistance should be encountered. A fresh period of correction and/or reconsolidation could develop in the short term with local support now visible starting in the 1,740.0/45.0 area. A clear and sustained break beneath here could extend near-term falls closer to the more important 1,700.0/05 zone where better demand should then be stimulated. Note: A decisive market close above 1,800.0 would signal 1,825.0/30.0 next.
Trading strategy: Continuing to buy dips/holding longs looking for the 1,800.0 region. Protecting profits now under 1,740.0.
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 18.30/50 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.
Tuesday, July 07, 2020 | Tel: + 44 (0)7710369208 | www.cliffgreenconsultancy.com | email: cliff_green@hotmail.com