Markets remain rather quiet as the re-consolidatory phase continues for the time being.

 

Copper

Medium- to long-term downtrends are still intact with little evidence of a major bottom to this bear cycle yet, while short-term trends are up with the past six weeks’ corrective and reconsolidative phase continuing for the time being. However, expect remaining upside potential to be restricted by resistances waiting at initially 5,350/70 then 5,440/60 with the lack of underlying basing activity leaving this market increasingly vulnerable to renewed bouts of weakness. Local support is now visible starting in the 5,180/5,200 zone then again towards 5,060/80 with a clear and sustained break beneath here needed to regenerate downward momentum.

Trading strategy: Remaining on sidelines for now awaiting fresh opportunity to re-establish shorts.

 

Aluminium

Medium- to long-term downtrends are undisturbed with little evidence of a bottom to this major bear cycle yet, though short-term trends have again flattened out with a fresh period of choppy reconsolidation being experienced now. Expect immediate weakness to again uncover good support starting at 1,470/80 then again towards the historically important 1,430/40 with a clear and sustained break beneath this lower boundary required to regenerate downward momentum. Unless achieved, further two-way market action is anticipated with nearby overhead resistances visible at 1,530/40 initially.

Trading strategy: Remaining on the sidelines for the time being, awaiting next directional signal.

 

Zinc

Medium- to long-term downtrends remain firmly in force with little evidence of a bottom yet, while short-term trends have flattened out with a fresh period of correction and reconsolidation currently being experienced. Expect immediate rally attempts to again meet strong overhead resistance on approach to the 2,050/70 area with only a clear and sustained break above here capable of improving the underlying technical tone. Unless achieved, this market remains vulnerable to renewed bouts of weakness with local supports now visible starting at 1,930/40 then again towards the pivotal 1,860/70 zone.

Trading strategy: Continuing to re-establish shorts on bounces looking for a retest of the 1,770 area.

 

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 have flattened out with a fresh period of reconsolidation being experienced now. Expect immediate weakness to continue to uncover good support on approach to the historically important 1,550/60 area and until/unless this can be decisively broken, further choppy two-way market activity is anticipated for the time being. Local resistances remain in place starting at 1,670/80 then again towards the pivotal 1,750/60 region, with a close above here needed to improve outlook.

Trading strategy: Continuing to utilize corrective rebounds to probe the short side.

 

Nickel

The overall bearish outlook remains firmly in force with little evidence of any bottom to this major downward cycle yet, while short-term trends have turned up with a period of corrective/reconsolidative action being experienced at present. However, expect immediate rally attempts to be restricted by strong overhead resistances waiting at 12,500/12,600 initially then at 13,400/13,500, with only a clear and sustained break above this upper boundary capable of improving the underlying tone. Local support at 11,600/11,700 could now come under a fresh test, which, if decisively breached, would signal10,900.

Trading strategy: Continuing to utilize corrective bounces to re-establish shorts.

 

Tin

While overall technical studies remain decisively bearish with little evidence of a bottom to this major downward cycle as 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 15,500/15,600 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: With profits on shorts secured, monitoring current correction ahead of re-establishing.

 

Gold

Medium- to long-term bullish patterns remain firmly in force and while prevailing high levels of volatility suggest deep corrective action is likely to be an ongoing characteristic, prices are expected to trend closer to the 1,800.0 region in the weeks ahead. Interim resistance should again be encountered in and around the 1,745.0/50.0 area although pullbacks should now uncover good support starting in the 1,660.0/65.0 zone. Only a clear and sustained break beneath here would trigger more serious near-term falls and set up a fresh challenge of the more important 1,600.0/05 levels where better demand should be stimulated.

Trading strategy: Would once again look to probe the long side on corrective dips looking for the 1,800.0 region.

 

Silver

While the overall technical outlook remains clearly bearish with lower targets still readable in the weeks ahead, interim objectives in and around the 11.20/40 area have been fulfilled with sharp corrective action currently being experienced. However, this appears poorly based and hence unlikely to prove sustainable at this stage with strong overhead resistances waiting at 16.00/20 initially, then on approach to the 16.80/17.00 zone. Unless this upper boundary can be regained, prices remain vulnerable to renewed bouts of weakness with support now waiting at 14.50/70 initially, then at 13.70/90.

Trading strategy: Monitoring current sharp corrective bounce for an opportunity to re-establish shorts.

 

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.

 

Thursday, May 07, 2020 | Tel: + 44 (0)7710369208 | www.cliffgreenconsultancy.com | email: cliff_green@hotmail.com

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