[Premium] Why This Base Metal May Bounce

July 25, 2019

Last week we outlined two Commodities that were ready to bounce and they're off to a great start.

Today we want to turn our focus to Base Metals, where one Commodity looks ready to reverse to the upside.

With Gold and Silver breaking out and Base Metals like Copper, Lead, and Nickel back towards the top of their ranges, Aluminum and Zinc have yet not gotten the memo and remain weak.

Here's Zinc sitting near the middle of its longer-term range and prices have begun to stabilize as momentum diverges positively. It may not seem like much but this new marginal low and tight consolidation could be the catalyst needed to start a move back towards 230. What's needed for confirmation is a breakout above the downtrend line from its May highs.

Click on chart to enlarge view.

Other Base Metals caught a bid over the last two months as Zinc and Aluminum sold off. With Copper, Lead, and Nickel looking ready to pause, Zinc looks like it has the potential to move back towards the top of its longer-term range if prices remain above 189.50.

If we're above that level, we can be long. Below that, all bets are off and a more neutral approach is best.

Check out the Commodity Chartbook for the other charts I note in this post.

Thanks for reading and please let us know if you have any questions.

Allstarcharts Team