A further consolidatory session as the past three months’ gains continue to be digested.
Underlying technical studies continue to improve with a major cyclical bottom confirmed to be in place, though the past the months’ strong recovery still appears poorly based with further accumulative action needed prior to the emergence of a sustainable bull trend. Hence, expect immediate rally attempts to again meet strong overhead resistance in and around the 5,920/40 area and while a decisive break above here could extend near-term gains closer to the 6,010/30 zone, this market remains vulnerable to renewed bouts of weakness. Nearby support is visible starting at 5,650/70 then 5,440/60.
Trading strategy: Preferring the long side but awaiting potentially sharp corrective pullback ahead of buying.
Long-term downtrends are still clearly intact, while short-term technical studies have improved with a secondary basing pattern confirmed to be in place. However, initial upside objectives in the 1,630/40 area have now been fulfilled with the past month’s strong gains now looking in need of correction and/or reconsolidation. Expect local support waiting in the 1,560/70 zone to come under serious examination in the coming sessions, which, if decisively broken, would trigger deeper near-term falls and set up a challenge of the 1,520/30 region where better demand should then be stimulated. Resistance remains at 1,630/40.
Trading strategy: Profits secured on longs with objectives achieved. Remaining on the sidelines for the time being.
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.
Short- to medium-term trends remain pointed sideways with prices still trapped within the confines of a broad and volatile trading range, while key local resistance in the 1,680/90 area is back under close examination. A clear and sustained break above would trigger advances closer to the 1,840/50 zone where better supply should then be stimulated and fresh corrective action is likely to be experienced. Pivotal support remains in place in and around the 1,710/20 region with a decisive market close back under here needed to put values under more serious downward pressure and signal 1,610/20.
Trading strategy: With prices back into a trading range situation, remaining on sidelines for now.
Medium- to long-term downtrends are undisturbed, though short-term trends continue to flatten out with an extended period of correction and reconsolidation being experienced at present. 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 support waiting at 11,800/11,900 initially.
Trading strategy: Remaining on the sidelines for the time being as reconsolidative phase continues.
While overall technical studies remain decisively bearish with little evidence of a bottom to this major downward cycle as yet, 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.
Underlying bullish patterns remain firmly in force with prices still expected to trend closer to the 1,800 region in the weeks ahead, while short-term trends have again flattened out with a fresh period of choppy reconsolidation currently being experienced. 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.
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.
Thursday, June 18, 2020 | Tel: + 44 (0)7710369208 | www.cliffgreenconsultancy.com | email: firstname.lastname@example.org