Copper’s corrective recovery continues for now as further layers of resistance are breached.
Copper
Underlying technical studies continue to improve with an important cyclical bottom confirmed to be in place, while lack of basing activity leaves the current recovery phase vulnerable to renewed bouts of weakness with further accumulation necessary ahead of a new and sustainable uptrend. Expect strong overhead resistance now to be encountered at 5,500/20 initially, then at 5,580/5,600 and with oscillators suggesting this market to be rather ‘overbought’ currently, fresh dips are likely in the days ahead. Local support starts in and around 5,370/90 then again towards 5,240/60 with a close beneath here needed to trigger deeper losses.
Trading strategy: Remaining on sidelines for now as the corrective/consolidative phase continues.
Aluminium
The medium- to long-term downtrend structure is undisturbed, though short-term technical studies have clearly improved with a secondary bottom now confirmed to be complete. This appears capable of supporting advances closer to the 1,630/40 area in the days and weeks ahead and while interim resistance should be anticipated in and around the 1,580/90 zone, any fresh bouts of weakness should now be cushioned by supports starting in the 1,490/1,500 region with a clear and sustained break back under here needed to set up fresh challenges of the historically important 1,430/40 levels.
Trading strategy: Looking to probe the long side on dips looking for the 1,630 area.
Zinc
Medium to long-term downtrends remain firmly in force with little evidence of a bottom as yet, while 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
Intermediate- to long-term downtrends are still firmly intact with little evidence of a bottom to this major bear cycle yet, though short-term trends continue to flatten out with prices oscillating within the confines of the past 10 weeks’ reconsolidation phase. Expect immediate rally attempts to again meet strong overhead resistance starting at 1,700/10 then again towards the upper boundary of this sideways pattern at 1,750/60. A clear and sustained break above here is needed to suggest at least a secondary bottom to be complete and further two-way action is likely until/unless this can be achieved.
Trading strategy: With prices back into a trading range situation, remaining on the sidelines for the time being.
Nickel
Medium- to long-term downtrends are undisturbed, though 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 starting at 12,800/12,900 then in the
13,400/13,500 area with only a clear and sustained break above here capable of improving technical tone with a secondary bottom then becoming complete. However, until/unless achieved, further choppy two-way activity is favoured for the time being with support waiting at 11,800/11,900 initially.
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 yet, prices look to have uncovered good support on approach to the historically important 13,000/13,100 area with much needed corrective action being experienced now. However, in the absence of any significant basing activity, recovery attempts are likely to prove unsustainable at this stage with strong resistance anticipated at 15,600/15,700 initially, then again towards the 17,000/17,100 region with prices remaining vulnerable to renewed bouts of weakness. Support now at 14,000/14,100.
Trading strategy: Monitoring the current corrective phase for an opportunity to re-establish shorts.
Gold
Overall technical studies remain decisively bullish with prices expected to trend towards the 1,800.0 region in the days and weeks ahead. While interim resistance should again be encountered in and around the 1,760.0/65.0 area, immediate pullbacks are likely to be restricted to potentially sharp but probably short-lived corrective action only for the time being. Local support should now be anticipated on approach to the 1,690.0/95.0 zone then again towards the more important 1,660.0/65.0 level where better demand should then be stimulated. Only a close beneath here would damage the tone.
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 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 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.
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, June 2, 2020 | Tel: + 44 (0)7710369208 | www.cliffgreenconsultancy.com | email: cliff_green@hotmail.com