LME & Precious Metals Report

Wednesday - November 2, 2016

Copper continues its upward journey as others consolidate for time being.

COPPER

While underlying technical studies continue to improve with an important basing pattern appearing to be under construction, the medium term trend structure remains rather flat with further preparatory two-way accumulation anticipated for the time being. Expect the current up-leg to challenge the 5020/40 area next with a clear and sustained break above here needed to set up a test of the critical 5120/40 zone. Note: a close above here is required to complete the transition to a new bull cycle. Immediate pullbacks should now be cushioned by support starting at 4810/30 then again towards the 4700//20 region.

TRADING STRATEGY: Hold longs re-established at 4720. Protect profits now beneath 4800 looking for 5030 area.

ALUMINIUM

Underlying technical studies remain firmly bullish with completed basing patterns capable of supporting higher targets in the coming weeks and months. Believe the 1760/70 area could come under strong attack next with a clear and sustained break above here required to confirm acceleration towards the 1840/50 and eventually 1970/80 regions. Immediate pullbacks are likely to be restricted to corrective action only for the time being with good nearby support anticipated at initially 1650/60 then 1600/10 with only a clear and sustained break back beneath here likely to trigger deeper near term falls.

TRADING STRATEGY: Having just missed suggested buying levels will await next correction prior to re-establishing longs.

ZINC

Underlying technical studies remain firmly bullish with completed basing patterns capable of supporting moves closer to the 2700 region in the weeks ahead. Interim resistances should be anticipated at initially 2520/30 then again towards the 2620/30 zone although any fresh pullbacks are likely to be restricted to potentially sharp but probably short lived corrective dips only for the time being. Local support starts now in and around 2390/2410 with a clear and sustained break back beneath here needed to trigger deeper near term falls and set up a return to the more important 2300 then 2200 regions.

TRADING STRATEGY: Would continue to utilise corrective weakness to re-establish longs.

LEAD

While underlying technical studies remain decisively bullish with prices expected to trend generally higher in the weeks ahead, immediate rally attempts continue to meet stiff resistance on approach to the 2150/60 area with further sharp corrective pullbacks anticipated. Local supports wait at initially 2010/20 then again in the more important 1960/70 region with only a clear and sustained break beneath here likely to damage the positive tone and trigger deeper near term falls. Note: eventual breaks above the key 2150/60 zone would confirm acceleration towards next targets set at 2220/30 then 2300/10.

TRADING STRATEGY: Will await next corrective pullback prior to re-establishing long positions.

NICKEL

While underlying bullish patterns remain in place with higher targets still readable, shorter term trends have again flattened out with yet a further period of choppy reconsolidation currently being experienced. Expect immediate weakness to again uncover good support on approach to the important 9600/9700 area with only a clear and sustained break beneath here likely to damage the positive tone and trigger deeper corrective action. Local resistance remains in place at 11000/11100 with a market close above here needed to fully confirm resumption of the main upward cycle and signal 11800/11900 next.

TRADING STRATEGY: Would continue to utilise corrective pullbacks to probe the long side.

TIN

Underlying bullish patterns remain firmly in force with prices now approaching our next objective area in and around the 20900/21000 region. Expect resistance to be encountered here although immediate pullbacks are likely to be restricted to potentially sharp but probably short lived corrective action only for the time being with eventual moves closer to the 21800/21900 area fully anticipated. Local support is visible starting in the 19400/19500 zone with only a clear and sustained break beneath here likely to trigger deeper falls and set up a return to the 18500/18600 level.

TRADING STRATEGY: With profits on 19700 longs now secured will look to re-establish on next corrective pullback.

GOLD

While longer term bullish patterns are undisturbed, the short to medium term technical outlook has clearly deteriorated with a secondary top now confirmed to be in place. Expect immediate recovery attempts to again meet stiff resistance starting at 1300.0/05.0 with a clear and sustained break above here needed to extend corrective strength closer to the 1330.0/35.0 area where better supply should then be uncovered. Important nearby support remains in place at 1260.0/65.0 then 1240.0/45.0 with a decisive break beneath here needed to regenerate downward momentum and set up a return to the 1200.0/05 region.

TRADING STRATEGY: Aside for time being but will monitor corrective bounces to consider the short side.

SILVER

While longer term uptrend structures are undisturbed, shorter term technical studies have deteriorated with a secondary top confirmed to be in place. Consider immediate recovery attempts to be corrective action only for the time being with strong resistances waiting at initially 10.20/40 then 20.20/40 expected to restrict upward progress. Only a close back above this upper boundary would improve the technical tone and until/unless achieved this market remains vulnerable to renewed bouts of weakness. Local support waits now starting at 17.80/18.00 then again towards the more important 16.80/17.00 zone.

TRADING STRATEGY: Aside for time being awaiting next directional signal.

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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.