The sharp uptrend in copper continues although gains remain increasingly vulnerable to a correction.
Underlying technical studies continue to improve with a major cyclical bottom confirmed to be in place, while the past three months’ strong recovery still appears poorly based with further accumulative action needed prior to the emergence of a sustainable bull trend. Hence, this market remains increasingly vulnerable to potentially sharp corrective weakness in the coming days with overhead resistance now visible at 5,930/50 initially, then 6,010/30. Nearby supports are waiting now starting at 5,770/90 then at 5,660/80 with a clear and sustained break back under here likely to trigger more serious near term losses.
Trading strategy: Preferring the long side but awaiting potentially sharp corrective pullback ahead of buying.
Long-term downtrends are still clearly intact, though short-term technical studies have clearly improved with a secondary basing pattern confirmed to be in place. However, remaining upside potential is beginning to look rather limited as objectives are now being approached in and around the 1,630/40 area where strong overhead resistance should be encountered. While a clear break above here could extend near-term gains closer to the 1,680/90 zone, prices are looking vulnerable to corrective pullbacks in the days ahead. Local support is now visible starting at 1,580/90, which if decisively breached, would signal a retest of 1,520/30.
Trading strategy: Taking profits on longs as objectives are being approached and stepping back to sidelines for now.
Medium- to long-term downtrends remain firmly in force with little evidence of a bottom as yet, though short-term trends have flattened out with a fresh period of correction and reconsolidation being experienced at present. 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 favoured 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.
Long-term downtrends are undisturbed though the short-term technical outlook appears to be improving with at least a secondary bottom confirmed to be in place. Chart measurements suggest moves close to the 1,890/1,900 area to now be likely in the days and weeks ahead and while interim resistance should be encountered in the 1,810/20 zone, immediate pullbacks are likely to be restricted to potentially sharp but probably short-lived corrective dips only for the time being. Supports wait at 1,670/80 initially, with only a close back under here likely to trigger more serious near term weakness.
Trading strategy: Preferring the long side once more but only on corrective dips looking for the 1,900 region.
Medium- to long-term downtrends are undisturbed, while short-term trends continue to flatten out with an extended period of correction and reconsolidation being experienced now. 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 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 being experienced at present. Expect immediate pullbacks to again be cushioned by support on approach to the 1,660.0/65.0 area with only a clear and sustained break beneath here likely to damage the positive tone and trigger deeper corrective falls. Unless achieved, further choppy two-way activity is likely for the time being with nearby resistances visible starting at 1,720.0/25.0 then 1,760.0/65.0
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 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.
Thursday, June 11, 2020 | Tel: + 44 (0)7710369208 | www.cliffgreenconsultancy.com | email: firstname.lastname@example.org