New technologies, including the advent of electrical vehicles, could continue to support the price performances of copper, nickel, lithium and cobalt. The metals industry has enjoyed a bull market since 4Q16 — as a result of higher-than-expected demand and economic growth in China — which helped tightened the market's surplus.
The sentiment at the beginning of the week varied between neutral and hopeful. However, in the medium term, expectations are for the continued appreciation of industrial metals. We can look out for good trading spots in Nickel, Zinc and Copper:
1 Nickel: Strong support levels and a test of 200SMA breakout on W1 chart.
D1: dodji bar at levels of support and Fibo 50%. SMA 50/200 in a bullish formation which gives a good place to enter if the next bar opens with a gap upwards to position long with SL 11868.
Alternatively, we can look for short positions if the price opens with a gap downwards.
2. Zinc: SMA50 test in uptrend. Price above diagonal and horizontal support. Fibonacci 50% and moving average 50/200 in the bullish formation: long with stop 3175.
Alternatively: Breakthrough below diagonal support and SMA50 will create short-term negative sentiment and short positions will make sense.
3. Copper: Opportunity for long positions at levels of diagonal and horizontal support. A 50SMA test gives good entry levels. The false break below the last bottom reinforces the probability of long. SL 6600
Alternatively: Breakthrough of the diagonal support and 50SMA will lead to short-term negative sentiment.
Trader Nikolay Georgiev
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