Aluminium remains under pressure while others continue to consolidate for the time being.

 

Copper

While the short term trend is up, the current recovery still appears to be corrective in structure and hence unlikely to prove sustainable at this stage. Expect resistances waiting at initially 5,100/20 then 5,180/5,200 to restrict upward progress with this market remaining vulnerable to renewed bouts of weakness in the days ahead. Local support should now be anticipated starting in the 4,900/20 area then again towards the pivotal 4,740/60 region with a market close beneath here needed to regenerate downward momentum and set up a retest of the recent lows around 4,370. Note: An extended period of basing will be required ahead of more significant gains being secured.

Trading strategy: Monitoring current corrective phase for opportunity to re-establish shorts.

 

Aluminium

Overall technical studies remain clearly bearish and while this major downward cycle looks to be entering its latter stages there is little evidence of a bottom as yet. Believe the historically important 1,430/40 area could come under serious examination in the days ahead and while a sustained break beneath here would encourage further losses, good support should certainly be anticipated in this region. However, immediate recovery attempts are expected to be restricted to unsustainable corrective bounces only for the time being with an extended period of basing required prior to any substantial and sustainable advances being secured.

Trading strategy: With prices now approaching potentially good support would take profits on any remaining shorts.

 

Zinc

While intermediate- to long-term downtrends remain firmly intact, interim downside objectives have been fulfilled with much needed corrective and reconsolidative action currently being experienced. However, in the absence of any significant basing activity, immediate recovery attempts are likely to prove unsustainable with strong overhead resistances waiting at initially 1,970/80 then 2,050/60 likely to cap gains for the time being. This market remains vulnerable to renewed bouts of weakness in the days ahead and while local support should be uncovered in the 1,830/40 zone, a break beneath here would signal 1,760/70 next.

Trading strategy: Remaining on sidelines for the time being as corrective/consolidative phase continues.

 

Lead

While intermediate to longer term technical studies remain clearly negative with lower targets still possible, interim objectives have been fulfilled with a fresh period of correction and reconsolidation now developing. With immediate weakness uncovering good support starting in the 1,630/40 area a fresh test of local overhead resistance in the 1,750/60 region is now anticipated, which if decisively breached would extend near-term gains closer to the 1,810/20 zone where better supply should then be stimulated. A clear and sustained break beneath 1,630/40 is now needed to put prices under fresh downward pressure and set up a retest of 1,570/80.

Trading strategy: Continuing to utilise corrective rebounds to probe the short side.

 

Nickel

While the overall bearish outlook remains firmly in force with little evidence of any bottom to this major downward cycle as yet, shorter term trends look to be flattening out with recent falls being digested through a combination of correction and reconsolidation. However, expect immediate recovery attempts to be restricted by resistance on approach to the 11,600/11,700 area with a clear and sustained break above here needed to trigger more serious near term gains and set up a challenge of the 12,200/12,300. Unless achieved, further choppy two-way activity is favoured for now with support at 10,500/10,600.

Trading strategy: With profits on shorts secured will await next signal prior to re-establishing.

 

Tin

While overall technical studies remain decisively bearish with little evidence of a bottom to this major downward cycle as 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 initially 15,100/15,200 then again towards the 16,000/16,100 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

While long term bullish patterns are undisturbed with prices still capable of trending higher in the weeks ahead, shorter term trends have flattened out with a volatile period of correction and reconsolidation currently being experienced. Expect immediate rally attempts to again meet strong overhead resistance in the 1,700.0/05.0 area with a clear and sustained break above here needed to regenerate upward momentum and confirm next targets in and around the 1,735.0/40.0 zone. Local supports are now visible starting in the 1,600.0/05.0 region then again towards the more important 1,565.0/70.0 levels.

Trading strategy: Remaining on the sidelines for the time being awaiting clearer directional signal.

 

Silver

While the overall technical outlook remains clearly bearish with lower targets still readable in the weeks ahead, interim objectives in and around the 11.20/40 area have been fulfilled with sharp corrective action currently being experienced. However, this appears poorly based and hence unlikely to prove sustainable at this stage with strong overhead resistances waiting at initially 15.30/50 then on approach to the 16.00/20 zone. Unless this upper boundary can be regained prices remain vulnerable to renewed bouts of weakness with support now waiting at initially 13.70/90 then 12.40/60.

Trading strategy: Monitoring current sharp corrective bounce for opportunity to re-establish shorts.

 

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.

 

Tuesday, April 14, 2020 | Tel: + 44 (0)7710369208 | www.cliffgreenconsultancy.com | email: cliff_green@hotmail.com

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