Recent impressive gains in copper experience much-needed corrective weakness.

 

Copper

Underlying technical studies continue to improve with a major cyclical bottom confirmed to be in place, while the past three 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 5,920/40 initially, then 6,010/30. Nearby supports are waiting now, starting at 5,620/40 then 5,440/60 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

Long-term downtrends are still clearly intact, though short-term technical studies have improved with a secondary basing pattern confirmed to be in place. However, remaining upside potential is beginning to look rather limited as objectives are now being approached in and around the 1,630/40 area where strong overhead resistance should be encountered. While a clear break above here could extend near-term gains closer to the 1,680/90 zone, prices are looking vulnerable to corrective pullbacks in the days ahead. Local support is now visible starting at 1,580/90, which if decisively breached, would signal a retest of 1,520/30.

Trading strategy: Profits secured on longs with objectives achieved. Remaining on sidelines for time being.

 

Zinc

Medium- to long-term downtrends remain firmly in force with little evidence of a bottom yet, though short-term trends have flattened out with a fresh period of correction and reconsolidation being experienced now. Expect immediate rally attempts to again meet strong overhead resistance on approach to the important 2,050/70 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 favored with support waiting at 1,890/1,900 then 1,760/80.

Trading strategy: Remaining on the sidelines for the time being as trends are flattening out.

 

Lead

Short- to medium-term trends look to have again flattened out with the inability of prices to capitalize upon the break of key overhead resistance levels keeping prices range bound for the time being. Expect immediate weakness to again uncover good support at 1,670/80 initially, then 1,610/20 with further choppy two-way market activity likely for now. Supply should again be uncovered starting in the 1,780/90 zone with a clear and sustained break above here needed to trigger more serious near-term gains and set values on course to challenge the 1,840/50 region.

Trading strategy: With prices back into a trading range situation, remaining on sidelines for now.

 

Nickel

While medium- to long-term downtrends are undisturbed, short-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 13,400/13,500 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 11,800/11,900 initially.

Trading strategy: Remaining on the sidelines for the time being as reconsolidative phase continues.

 

Tin

Overall technical studies remain decisively bearish with little evidence of a bottom to this major downward cycle yet, while short-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 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

While underlying bullish patterns remain firmly in force with prices still expected to trend closer to the 1,800 region in the weeks ahead, short-term trends have flattened out again with a fresh period of choppy reconsolidation being experienced now. Expect immediate rally attempts to again meet strong resistance at 1,740.0/45.0 initially, then in the more important 1,760.0/65.0 zone with a clear and sustained break above here needed to regenerate upward momentum. Until/unless achieved further two-way activity is favored with key support visible in and around the 1,660.0/65.0 area.

Trading strategy: Continuing to buy dips/holding longs looking for the 1,800.0 region.

 

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: Preferring the long side now, but only on corrective dips 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, June 12, 2020 | Tel: + 44 (0)7710369208 | www.cliffgreenconsultancy.com | email: cliff_green@hotmail.com

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