LME & Precious Metals Report

Monday July 25^th

Complex finishes the week slightly lower as recent gains continue to be digested.

COPPER

While underlying technical studies look to be improving with an important basing pattern appearing to be under construction, medium term trends are still pointed sideways as this preparatory foundation work continues for the time being. Expect immediate rally attempts to again meet stiff resistance starting at 5030/50 then again towards the critical 5120/40 zone with a sustained market close above here required to complete the transition to a new bull cycle. However, until achieved further choppy two-way activity is to be anticipated with local support now visible at initially 4850/70 then again towards 4740/60.

TRADING STRATEGY: With profits on longs secured will look to re-establish on current corrective weakness.

ALUMINIUM

While the underlying technical outlook remains potentially bullish with increasing evidence suggesting an important cyclical bottom to be in place, further bottoming action looks likely prior to fully completing the transition to a new bull trend. Expect the current down leg to challenge pivotal support waiting at initially 1580/90 with a clear and sustained break beneath here needed to trigger deeper near term falls and set up a test of the key 1530/40 zone. However, this market remains vulnerable to renewed bouts of strength in the days and weeks ahead and while local resistance starts at 1660/70 a retest of the critical 1700/10 zone is likely.

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

ZINC

Overall bullish studies remain firmly in force with completed basing patterns capable of supporting higher targets in the days and weeks ahead. Next objective is set in and around the 2300/10 area which if eventually broken would confirm a challenge of the historically important 2400/20 region where better supply should then be stimulated. Immediate pullbacks are likely to be restricted to potentially sharp but probably short lived corrective dips only for the time being with support now visible starting at 2150/60. A clear and sustained break beneath here is required to trigger deeper falls closer to the 2060/70 zone.

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

LEAD

Intermediate trends remain rather flat with prices continuing to oscillate within the confines of a broad and volatile trading range. Expect the current upward component to meet strong overhead resistance in and around the 1910/20 area with a clear and sustained break above here required to extend near term gains closer to the 2000/10 zone where better supply should then be encountered. Immediate pullbacks are likely to be restricted to potentially sharp but probably short lived corrective dips only for the time being with nearby supports now waiting at initially 1780/90 then 1680/90.

TRADING STRATEGY: Continue to utilise weakness to probe the long side of this market.

NICKEL

Underlying technical studies remain clearly positive with completed basing patterns capable of supporting higher targets in the weeks ahead. With near term pullbacks being restricted to corrective action only believe prices should now head towards next objectives set at initially 11200/11300, which if decisively breached would confirm acceleration closer to the 12000/12100 zone prior to better supply being stimulated. Nearby support starts now in and around the 10000/10100 region with only a clear and sustained break back under here likely to trigger deeper near term falls closer to 9500/9600.

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

TIN

Underlying technical studies remain decisively bullish and with recent corrective and reconsolidative phase now confirmed to have run its course the developing upward cycle looks to be resuming. Expect prices to head towards the 19900/20000 area in the weeks ahead and while interim resistance should be encountered in and around the 18500/18600 region any further pullbacks are likely to remain restricted to potentially sharp but probably short lived reactions only for the time being. Supports wait now at initially 17100/17200 then 16400/16500 with only a close beneath here likely to damage the positive tone.

TRADING STRATEGY: Continue to probe the long side on corrective pullbacks.

GOLD

Underlying technical studies remain decisively bullish with completed basing patterns capable of supporting moves closer to the 1400.0 region in the days and weeks ahead. However, interim objectives have been fulfilled with fresh corrective action currently being experienced with key nearby support waiting in and around the 1305.0/10.0 area likely to come under renewed examination in the coming sessions. While a decisive break beneath here could extend near term falls closer to the 1270.0/75.0 zone, success in holding would encourage further bouts of strength and signal a retest of the 1375.0/80.0 level.

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

SILVER

Underlying technical studies continue to improve with completed basing patterns capable of supporting moves closer to the 25.00 region in the weeks ahead. Interim resistance should be anticipated at initially 21.10/30 then again towards the 22.00/10 area although immediate pullbacks are likely to be restricted to potentially sharp but probably short lived corrective dips only for the time being. Nearby support starts now in the 19.20/30 zone with a clear and sustained break back under here needed to trigger deeper near term falls and set up a return to the 18.50/60 level.

TRADING STRATEGY: Continue to buy dips/hold longs looking for 25.00 region. Protect profits now beneath 19.50 area.

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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.