The corrective and reconsolidative phase continues for the time being although recoveries appear fragile.

 

Copper

Medium- to long-term downtrends remain firmly in force with the past five weeks’ recovery phase still considered to be poorly based corrective action only and hence unlikely to prove sustainable. Expect strong resistance to be encountered on approach to the 5,320/40 area and unless this can be decisively broken, anticipate renewed bouts of weakness in the days and weeks ahead. Local supports are now visible starting at 5,080/5,100 then again towards the pivotal 4,940/60 zone with a market close beneath here needed to regenerate downward momentum and signal retests of 4,740 initially and eventually 4,400.

Trading strategy: Holding shorts looking for initially 4,740 and even 4,400. Protecting above 5,340.

 

Aluminium

Overall bearish patterns are undisturbed, while short-term trends look to have flattened out with a fresh characteristic period of correction and reconsolidation being experienced now. Expect immediate recovery attempts to be restricted by strong overhead resistances waiting at 1,540/60 initially and whilst a clear and sustained break back above here could extend near-term gains closer to the 1,600/10 zone, this market remains vulnerable to renewed bouts of weakness in the days ahead. Supports are now visible starting at 1,480/90 then again towards the historically important 1,430/40 region.

Trading strategy: Having secured profits on shorts, remaining on sidelines for the time being.

 

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 being experienced at present. However, expect immediate recovery attempts to again meet strong overhead resistance at 1,970/80 initially and while a decisive break above here could extend near-term gains, further supply waiting in the 2,050/70 zone should limit upside potential with this market increasingly vulnerable to renewed bouts of weakness. Local support is visible starting at 1,860/70 then again towards 1,760/70.

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

 

Lead

Medium- to long-term bearish patterns remain firmly intact and while shorter-term trends are rather flat now with a period of correction and reconsolidation being experienced, this market is looking vulnerable to renewed bouts of weakness in the days ahead. The historically important 1,550/60 region could come under fresh examination, which, if decisively breached, would trigger acceleration towards the 1,500 and even 1,450 areas prior to better demand being stimulated. However, until achieved further, choppy two-way activity is likely with resistance now visible at 1,670/80 then 1,750/60.

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, though short-term trends have turned up with a period of corrective action being experienced now. However, strong overhead resistances waiting at 12,900/13,000 initially, then at 13,400/13,500, should cap gains and unless this upper boundary can be decisively breached, this market appears increasingly vulnerable to renewed bouts of weakness in the days and weeks ahead. Nearby support should now be anticipated at 11,400/11,500 initially, then again towards 10,800/10,900.

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

 

Tin

Overall technical studies remain decisively bearish with little evidence of a bottom to this major downward cycle yet, but prices look to have uncovered good support on approach to the historically important 13,000/13,100 area with much needed corrective action currently being experienced. 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 1,640.0/45.0 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 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, April 30, 2020 | Tel: + 44 (0)7710369208 | www.cliffgreenconsultancy.com | email: cliff_green@hotmail.com

Leave a Reply

Your email address will not be published.