A rather weak session saw Wednesday’s positive moves fully reversed.
Copper
The medium- to long-term downtrend structure is undisturbed. Short-term trends have turned up with recent heavy falls that are being digested at present through a combination of correction and reconsolidation. However, in the absence of any basing activity, near-term gains are unlikely to prove sustainable with this market remaining vulnerable to renewed bouts of weakness. Heavy resistances are now visible starting at 4,960/80 then at 5,180/5,200 with a retest of local support in the 4,730/50 zone
anticipated in the days ahead. A clear and sustained break beneath here would signal a retest of 4,600/20 then 4,460/80.
Trading strategy: Monitoring current corrective phase for opportunity to re-establish shorts.
Aluminium
Intermediate- to long-term trends are still pointed down with little evidence of a bottom to this major downward cycle yet. Prices could head towards a test of the historically important 1,430/50 region in the weeks ahead and while interim support should be uncovered in and around 1,470/80, immediate recovery attempts should be restricted to potentially sharp but probably short-lived corrective bounces only for the time being. Strong overhead resistance should be encountered starting in the 1,550/60 area, which needs to be regained to extend near-term gains and set up a challenge of the 1,630/40 region.
Trading strategy: Awaiting corrective action ahead of reestablishing short positions.
Zinc
The medium- to long-term technical outlook remains decisively bearish with lower targets anticipated in the weeks ahead. Interim objectives in and around the 1,760/70 area have been fulfilled with a fresh period of correction/reconsolidation being experienced at present. However, immediate recovery attempts are likely to be restricted by strong overhead resistance extending up to the 1,930/40 area with only a clear and sustained break above here capable of relieving the prevailing downward pressure and extending gains closer to 2,050/70 where better supply should then be uncovered.
Trading strategy: Monitoring current corrective phase for opportunity to re-establish shorts.
Lead
The medium- to long-term bearish outlook is undisturbed with prices expected to trend lower in the weeks ahead. Interim downside objectives have been fulfilled with much-needed corrective and reconsolidative action that is being experienced at present. However, immediate recovery attempts are likely to be restricted by strong resistances waiting at 1,750/60 initially, then at 1,810/20 and in the absence of any basing activity this market remains vulnerable to renewed bouts of weakness in the days and weeks ahead. Local supports are now visible starting at 1,630/40 then again towards the key 1,570/80 region.
Trading strategy: Continuing to utilize corrective rebounds to probe the short side.
Nickel
Medium- to long-term downtrends remain firmly intact and while prices have almost achieved interim downside objectives of 10,500/10,600, immediate recovery attempts are likely to be restricted to unsustainable corrective bounces for the time being. Overhead resistance should be encountered starting in the 11,700/11,800 area with a decisive market close above here needed to trigger more serious near-term gains and set up a challenge of the 12,200/12,300 region where better supply should be stimulated. Note: A close beneath 10,500 would confirm next targets around 10,000.
Trading strategy: With profits on shorts secured will await next signal prior to re-establishing.
Tin
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, while this recovery attempt could challenge the 15,000/15,100 area ahead of meeting too much overhead resistance, gains are likely to prove both unsustainable and short-lived with this market still vulnerable to further bouts of weakness in the days and weeks ahead.
Trading strategy: With profits secured will await next correction ahead of re-establishing.
Gold
The medium-term technical outlook has clearly deteriorated with preliminary indications suggesting the past week’s strong corrective rebound to have now run its course. Prices once more appear vulnerable to renewed bouts of weakness with local support, which waits in the 1,555.0/60.0 area likely to come under renewed examination. A clear and sustained break beneath here would put this market under more serious downward pressure and set up a challenge of the 1,500.0/05.0 region ahead of better
demand being stimulated. Resistances remain in place starting at 1,640.0/45.0 then again towards 1,700.0/05.0.
Trading strategy: Probing short side once again as correction looks complete looking for 1,500.0 region.
Silver
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 being experienced at present. However, this appears poorly based and hence unlikely to prove sustainable at this stage with strong overhead resistances waiting at 14.60/80 initially, 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 a retest of 11.20/40 and even 10.00/20 readable.
Trading strategy: Utilizing potentially sharp corrective bounces to probe the short side looking for 10.00 region.
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, April 2, 2020 | Tel: + 44 (0)7710369208 | www.cliffgreenconsultancy.com | email: cliff_green@hotmail.com