Copper’s short term uptrend accelerates but gains remain vulnerable to a sharp correction.
Copper
Underlying technical studies continue to improve with a major cyclical bottom confirmed to be in place, though the past three months’ strong recovery still appears fragile and poorly based with further accumulative action needed prior to a new and sustainable bull trend emerging. Expect resistance to be encountered in and around the 5,820/40 area and while a decisive break above here could extend near-term gains closer to the 5,930/50 region, this market remains increasingly vulnerable to potentially sharp corrective weakness. Local supports are visible starting at 5,660/80 then again towards the 5,530/50 zone.
Trading strategy: Preferring the long side but awaiting potentially sharp corrective pullback ahead of buying.
Aluminium
The long-term downtrend structure is clearly undisturbed, while the short-term technical outlook has improved with the completion of a secondary basing pattern. This is capable of supporting advances towards 1,630/40 initially and possibly 1,680/90 where renewed supply should then be encountered with a much larger accumulative pattern required if long-term bear trends are to be challenged. Nearby supports are now visible starting at 1,520/30 with a clear and sustained break beneath here needed to trigger more serious corrective pullbacks closer to the 1,480/90 region.
Trading strategy: Continuing to buy dips/holding longs looking for the 1,630 region. Protecting profits now with stops under 1,580.
Zinc
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. 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.
Lead
Long-term downtrends are undisturbed, while the short-term technical outlook appears to be improving with the past 10 weeks’ reconsolidative phase now confirmed to be at least a secondary bottom. This is capable of supporting advances closer to the 1,890/1,900 zone in the days and weeks ahead and while interim resistance should be encountered in and around the 1,810/20 area, immediate pullbacks should be restricted to corrective dips only for the time being. Local support starts now in the 1,670/80 region with a clear and sustained break back under here needed to trigger deeper losses.
Trading strategy: Preferring the long side once more but only on corrective dips looking for the 1,900 region.
Nickel
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 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 supports waiting at 11,800/11,900 initially.
Trading strategy: Remaining on the sidelines for the time being as reconsolidative phase continues.
Tin
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 17,000/17,100 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.
Gold
While underlying bullish patterns remain firmly in force with prices still expected to trend closer to the 1,800 region in the weeks ahead, short-term trends have again flattened out with a fresh period of choppy reconsolidation being experienced now. 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.
Silver
Short- to medium-term technical studies have clearly improved with prices breaking decisively to the upside form 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.
Wednesday, June 10, 2020 | Tel: + 44 (0)7710369208 | www.cliffgreenconsultancy.com | email: cliff_green@hotmail.com