The complex remains steady as resistances come under serious examination.
Copper
The medium- to long-term downtrend structure is undisturbed, while short-term trends are still pointed up with the past couple of months’ corrective and reconsolidative phase continuing for the time being. Expect immediate strength to meet stiff overhead resistance again in and around the 5,360/80 area with a clear and sustained break above here needed to extend near-term gains and set up a challenge of the 5,440/60 zone next. However, further failure to break/sustain breaks to the upside would keep values range bound for now, with local supports visible starting at 5,140/60 then again towards 5,050/70.
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. Immediate weakness continues to be cushioned on approach to the historically important 1,430/50 area keeping values range bound for the time being with only a clear and sustained break beneath here capable of regenerating downward momentum. Strong overhead resistance is visible in and around 1,530/40 with a market close above here needed to complete a secondary base.
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 being experienced at present. Expect immediate rally attempts to again meet strong overhead resistance on approach to the 2,050/70 area with only a clear and sustained break above here capable of improving the underlying technical tone. Unless achieved, this market remains vulnerable to renewed bouts of weakness with local support now visible starting at 1,930/40 then again towards the pivotal 1,860/70 zone.
Trading strategy: Continuing to re-establish shorts on bounces looking for a retest of the 1,770 area.
Lead
Intermediate- to long-term downtrends are still firmly intact with little evidence of a bottom to this major bear cycle yet, while short-term trends have flattened out with a fresh period of reconsolidation being experienced now. Expect immediate rally attempts to meet strong overhead resistance starting in the 1,680/90 area, which, if decisively breached, could extend near-term gains closer to the more important 1,750/60 region where better supply should then be stimulated. Critical support remains visible on approach to the 1,550/60 zone with a close beneath here needed to regenerate downward momentum.
Trading strategy: Continuing to utilize corrective rebounds to probe the short side.
Nickel
The medium- to long-term downtrend structure remains firmly intact with little evidence of a serious bottom yet, though short-term trends have flattened out with an extended period of correction and reconsolidation currently being experienced. Expect strong overhead resistance in the 12,500/12,600 area to continue to limit upside potential with only a clear and sustained break above here capable of extending near-term gains and setting up a challenge of the 13,400/13,500 region where better supply should then be stimulated. Unless achieved, further choppy two-way action is likely with support at 11,600/11,700.
Trading strategy: Continuing to utilize corrective bounces to re-establish shorts.
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 being experienced now. However, in the absence of any significant basing activity, recovery attempts are likely to prove unsustainable at this stage with strong resistance anticipated at 15,500/15,600 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 1,700.0/05.0 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 starting 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.
Wednesday, May 20, 2020 | Tel: + 44 (0)7710369208 | www.cliffgreenconsultancy.com | email: cliff_green@hotmail.com