Copper comes under downward pressure as recent gains are finally corrected.
Copper
While underlying technical studies continue to improve with higher targets readable in the weeks and months ahead, the past 14 weeks strong recovery is beginning to look over-stretched and increasingly vulnerable to corrective pullbacks in the shorter term. Expect overhead resistance to be encountered at initially 6120/40 then 6230/50 with an extended period of accumulation still required for a major bull cycle to be supported. Local supports are visible starting in the 5930/50 area then again towards 5840/60 with a close beneath here needed to trigger more serious losses and set up a challenge of the 5650/70 region next.
Trading Strategy: Preferring the long side but awaiting potentially sharp corrective pullback ahead of buying.
Aluminium
While underlying technical studies continue to improve with at least a secondary bottom confirmed to be in place, immediate recovery attempts should again meet strong overhead resistance in and around the 1630/40 area with a clear and sustained break above here needed to extend gains and set up a challenge of the 1680/90 zone where better supply should then be stimulated. Any further bouts of weakness should be cushioned by support waiting in the 1560/70 region with a decisive market close back under here needed to trigger more serious near term losses and signal a test of 1520/30 where fresh demand should be uncovered.
Trading Strategy: Remaining on sidelines for time being awaiting next directional signal
Zinc
While shorter-term trends look to have turned up with prices appearing capable of heading higher in the weeks ahead, upward progress remains rather laboured with regular corrective dips anticipated along the way. Expect immediate pullbacks to be cushioned by the support which extends down to the 1950/60 area with only a clear and sustained break beneath here likely to threaten the improved outlook. Unless achieved further tests of the 2090/2100 zone are likely in the coming days, which if decisively breached would confirm the next objectives set in the 2190/2200 region.
Trading Strategy: Would now be preferring the long side but only on corrective pullbacks.
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 1810/20 with a clear and sustained break above here needed to generate renewed upward momentum and signal a test of the 1900/10 region next where better supply should then be stimulated. Near term, pullbacks should be cushioned by supports waiting at initially 1710/20 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 13400/13500 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 14400/14500 zone next. However, until the achieved further choppy two-way activity is anticipated with local support visible starting at 12400/12500 then again towards more important 11800/11900 region.
Trading Strategy: Preferring the long side but only on fresh dips within a developing range.
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 3 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 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 the current corrective phase for an opportunity to re-establish shorts.
Gold
While underlying bullish patterns remain firmly in force with little evidence of a top as yet, our long-awaited objective in and around the 1800.0 region is now being approached where strong resistance should be encountered. Believe a fresh period of correction and/or reconsolidation could develop in the shorter term with local support now visible starting in the 1740.0/45.0 area. A clear and sustained break beneath here could extend near term falls closer to the more important 1700.0/05 zone where better demand should then be stimulated. Note: a decisive market close above 1800.0 would signal 1825.0/30.0 next.
Trading Strategy: Continuing to buy dips/holding longs looking for 1800.0 region Protecting profits now under 1740.0.
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 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: Continue to buy dips/holding longs 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. 6th July 2020 Tel: + 44 (0)7710369208 – www.cliffgreenconsultancy.com – email: cliff_green@hotmail.com