Copper surges through further layers of support with lower targets still clearly readable.
Copper
Medium to longer term trends are down and with prices accelerating through further layers of historically important support a retest of the 2016 lows in and around the 4,300 region now appears likely in the days ahead. While interim demand should be anticipated in the 4,580/4,600 zone immediate recovery attempts are likely to be restricted to short lived corrective bounces only for the time being. However, considering the speed and extent of recent losses these could prove extremely sharp with nearest overhead resistances visible starting in the 5,000/20 zone then again towards 5,180/5,200.
Trading Strategy: Would lower stops on any shorts to protect profits as prices look vulnerable to sharp correction.
Aluminium
While medium to longer term downtrends remains firmly in force with little evidence of any bottom to this well-established bear cycle as yet, interim objectives in and around the 1,590/1,600 area are now being approached with recent losses appearing in need of digestion through correction and/or reconsolidation in the shorter term. Local overhead resistances waiting at initially 1,680/90 then 1,750/60 should restrict immediate recovery attempts with only a clear and sustained break above here capable of improving the underlying tone. Note: a close beneath 1,590 would signal next targets around 1,550/60.
Trading Strategy: Lower protective stops on any short positions to protect profits as corrective bounces likely.
Zinc
Medium to longer term technical studies remain decisively bearish and with recent corrective and reconsolidative action proving rather short lived the main downward cycle looks to have resumed. Expect prices to head towards next objectives set in and around the 1,800/10 zone and while fresh demand should again be anticipated here a clear and sustained break beneath this level would expose the 1,720/30 area next. Any further recovery attempts should continue to be limited by strong overhead resistances waiting at initially 1,970/80 then again towards the more important 2,050/70 region.
Trading Strategy: Continuing to sell rallies/holding shorts looking for the 1,800 region. Protect profits with lowered stops.
Lead
The medium to longer term trend structure is clearly pointed down with completed topping patterns capable of pushing values generally lower in the coming weeks. However, interim targets in and around the 1,550 area have almost been achieved with this market looking vulnerable to potentially sharp corrective rebounds in the shorter term. These are likely to prove short lived with strong overhead resistances waiting now at initially 1,740/50 then again towards the 1,810/20 zone with a clear and sustained break above here needed to relieve the prevailing downward pressure.
Trading Strategy: With trends having turned down would continue probing the short side on corrective bounces.
Nickel
Intermediate to longer term technical studies remain clearly bearish with prices expected to head towards the 10,400/10,500 region in the days ahead. Interim support should now be anticipated in and around the 10,900/11,000 area although immediate recovery attempts are likely to remain restricted to potentially sharp but unsustainable corrective rebounds only for the time being. Overhead resistances are now anticipated starting in the 12,200/12,300 zone then again towards the more important 12,800/12,900 levels where better supply should then be stimulated. Only a close back above here would improve the underlying technical tone.
Trading Strategy: Continuing to utilise corrective bounces to sell/holding shorts looking for targets of 10,900 and even 11,500.
Tin
While overall technical studies remain decisively bearish with little evidence of a bottom to this major downward cycle as yet, prices are now accelerating towards a test of the historically important 13,200/13,300 region where support should be uncovered. However, immediate recovery attempts are likely to be restricted to potentially very sharp but probably short-lived corrective rebounds only for the time being with strong overhead resistances now waiting at initially 15,000/15,100 the again towards 16,000/16,100.
Trading Strategy: Continuing to utilise corrective bounces to re-establish short positions/holding shorts. Targets 13,300.
Gold
While short to medium term trends have turned down with an important top confirmed to be in place, initial downside objectives in and around the 1445.0/50.0 area have been fulfilled with a ferh period of correction and reconsolidation currently being experienced. However, strong overhead resistances waiting at initially 1565.0/70.0 then 1600.0/05.0 should restrict immediate upside potential with a period of rebuilding/basing now clearly required prior to sustainable rallies being achieved. Note: a clear and sustained break beneath the 1445.0/50.0 zone could extend losses closer to the 1,400.0/05.0 region.
Trading Strategy: Remaining on sidelines for now awaiting corrective bounce to consider probing short side.
Silver
Intermediate to longer term trends are down and with further layers of historically important supports having now been decisively broken falls closer to the 10.00/20 region are now likely. Interim demand should be uncovered in and around the 11.20/40 area although immediate recovery attempts should now be restricted to potentially sharp but probably short lived corrective rebounds only for the time being. Strong overhead resistances should now be encountered starting in the 15.00/20 then 1,600/20 zones with only a period of re-accumulation capable of improving the underlying tone.
Trading Strategy: Utilising potentially sharp corrective bounces to probe the short side looking for 10.00 region.
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 March 19, 2020 Tel: + 44 (0)7710369208 – www.cliffgreenconsultancy.com – email: cliff_green@hotmail.com