Markets start the week in a consolidative mode as recent falls continue to be digested.

 

Copper

The medium- to long-term bearish outlook is still firmly in force and while prices are currently digesting recent losses through a combination of correction and reconsolidation, this market remains vulnerable to renewed bouts of weakness in the days and weeks ahead. Expect immediate recovery attempts to again meet strong overhead resistance on approach to the 4,930/50 area with only a clear and sustained break above here capable of extending near-term gains and setting up a retest of the 5,180/5,200 region. Supports are visible starting at 4,630/50 then again towards the 4,460/80 zone.

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 at 1,520/30 initially then at 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 1,580/90 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 re-establishing 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: With profits on shorts now secured will await corrective bounces prior to re-establishing.

 

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 the much-needed corrective and reconsolidative action 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. Key support is visible in and around the 1,570/80 area then again towards 1,490/1,500.

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 only 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 then 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

Medium-term technical studies have deteriorated with interim objectives in and around the 1,700.0 region having been achieved. The subsequent sharp correction also looks complete for the time being with fresh tests of resistances waiting at 1,640.0/45.0 initially likely in the coming sessions. A clear and sustained break above here would encourage a further challenge of the important 1,700.0/05.0 region, with a close above here required to extend gains closer to the 1,750.0/05.0 zone. However, the speed and extent of the past couple of days recovery suggest, further volatile two-way activity is likely with support now at 1,530.0/35.0.

Trading strategy: Remaining on sidelines for now awaiting clearer directional signal.

 

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 currently being experienced. However, this appears poorly based and is 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.

 

Tuesday, 31st March 2020 | Tel: + 44 (0)7710369208 | www.cliffgreenconsultancy.com | email: cliff_green@hotmail.com

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