Markets lacking any real direction at the moment as the choppy corrective/consolidative phase continues.
Copper
Underlying technical studies look to be improving with a potential bottoming pattern appearing to be under construction, while further two-way market activity is favoured for the time being as this accumulative process continues. Expect local support waiting in the 5,240/60 area to come under further strong attack, which, if decisively breached, would trigger acceleration towards the more important 5,140/60 zone where better demand should then be uncovered. Any further rally attempts should again be restricted by resistances waiting at 5,450/70 initially, with a close above here needed to set up a test of the 5,580/5,600 region.
Trading strategy: Remaining on sidelines for now as the corrective/consolidative phase continues.
Aluminium
Medium- to long-term downtrends are undisturbed with little evidence of a bottom to this major bear cycle yet, though short-term trends have again flattened out with a fresh period of choppy reconsolidation being experienced now. Expect immediate recovery attempts to again meet strong overhead resistance in and around the 1,530/40 area with a clear and sustained break above here needed to suggest a secondary base to be completely capable of supporting advances closer to the 1,580/90 zone where better supply should then be stimulated. Unless achieved further two-way activity is favored with support still at 1,430/50.
Trading strategy: Remaining on the sidelines for the time being, awaiting next directional signal.
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 currently being experienced. Expect immediate bouts of weakness to again uncover good support on approach to the 1,860/70 area with a clear and sustained break beneath here needed to regenerate downward momentum and set up a retest of the area of the March lows in and around 1,760/80 where better demand should then be uncovered. Resistance remains in place at 2,050/70 with a close above here needed to improve the tone.
Trading strategy: Remaining on the sidelines for the time being as trends are flattening out.
Lead
Intermediate- to long-term downtrends are still firmly intact with little evidence of a bottom to this major bear cycle yet, while immediate weakness continues to be cushioned by support on approach to the 1,550/70 area keeping values effectively range bound for the time being. However, resistance, which extends up to the 1,750/60 region should restrict rally attempts for the time being with only a clear and sustained market close above here capable of improving the underlying technical tone and triggering more serious advances with next targets then set in the 1,800/20 zone.
Trading strategy: With prices back into a trading range situation, remaining on the sidelines for the time being.
Nickel
Medium- to long-term downtrends are undisturbed, though short-term trends continue to flatten out with an extended period of correction and reconsolidation currently being experienced. Expect the prevailing up-leg to again meet strong overhead resistance starting at 12,800/12,900 then in the 13,400/13,500 area with only a clear and sustained break above here capable of improving technical tone with a secondary bottom then becoming complete. However, until/unless achieved further, choppy two-way activity is favoured for the time being with support 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, 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 15,600/15,700 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
Overall technical studies remain decisively bullish with prices expected to trend towards the 1,800.0 region in the days and weeks ahead. While interim resistance should again be encountered in and around the 1,760.0/65.0 area, immediate pullbacks are likely to be restricted to potentially sharp, but probably short lived corrective action only for the time being. Local support should now be anticipated on approach to the 1,690.0/95.0 zone then again towards the more important 1,660.0/65.0 level where better demand should then be stimulated. Only a close beneath here would damage the tone.
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 from the confines of the past months’ reconsolidative pattern. The market looks capable of challenging the 18.80/19.00 area in the days ahead and while interim resistance should be encountered in and around the 17.50/70 region, immediate pullbacks are likely to be limited to corrective dips only for the time being. Local support is now visible staring at 15.40/60 then again towards the more important 14.50/70 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 17.70/18.80 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, May 28, 2020 | Tel: + 44 (0)7710369208 | www.cliffgreenconsultancy.com | email: cliff_green@hotmail.com