Recent sharp losses continue to be digested as prices settle into a fresh consolidation pattern.

 

Copper

The medium- to long-term bearish outlook is undisturbed with little evidence of a bottom to this major downward cycle yet. Recent dramatic falls are currently being digested through much needed corrective and reconsolidative action. However, immediate recovery attempts should meet stiff overhead resistance starting in the 4,930/50 area with a clear and sustained break above here needed to extend near-term gains and set up a test of the 5,180/5,200 zone where better supply should then be stimulated. This market remains vulnerable to renewed bouts of weakness with supports now waiting at 4,460/80 then 4,350/70.

 

Trading strategy: Having taken profits on shorts now looking to re-establish on corrective bounces.

 

Aluminium

Intermediate- to long-term bearish patterns remain firmly intact with a retest of the historically important 1,430/40 area now possible in the weeks ahead. However, interim supports should be anticipated at initially 1,530/40 then 1,470/80 although immediate recovery attempts should be restricted to potentially sharp but probably short-lived corrective bounces only for the time being. Overhead resistances start now in and around the 1,580/90 zone then again at 1,630/40 with a clear and sustained break back above here needed to relieve the current downward pressure and signal more serious near-term gains closer to 1,700/10.

 

Trading strategy: With profits on shorts secured, would remain on the sidelines for time being.

 

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

Intermediate bearish technical studies remain clearly in force with lower targets readable. Interim objectives on approach to the 1,550 area have almost been achieved with a fresh period of correction and reconsolidation currently being experienced. Expect immediate recovery attempts to again

meet stiff overhead resistance in and around the 1,690/1,700 area with a clear and sustained break above here needed to extend near-term gains closer to the 1,750/60 region where better supply should then be uncovered. Local support should be anticipated starting at 1,570/80.

 

Trading strategy: With trends having turned down would continue probing the short side on corrective bounces.

 

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 initially 1,640.0/45.0 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 hence unlikely to prove sustainable at this stage with strong overhead resistances waiting at initially 14.60/80 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.

 

Friday, March 27, 2020 Tel: + 44 (0)7710369208 – www.cliffgreenconsultancy.com – email: cliff_green@hotmail.com

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