Wednesday 20th January 2010

COPPER

While medium to longer term uptrend structures are undisturbed,
increasing technical evidence suggests the past 12 months bull
cycle to be close to completion with prices vulnerable to serious
correction in the weeks ahead. Expect immediate rally attempts to
again meet stiff resistance in and around 7590/7610 with a clear
and sustained break back above here needed to set up a return to
the area of the recent peaks at 7780/7800. Continued choppy
two-way market activity is to be anticipated for the time being with
any fresh bouts of weakness likely to again uncover good support
in the 7300/20 the 7180/7200 areas.
TRADING STRATEGY: Remain on sidelines for time being as bull
cycle enters its latter stages.

LEAD

While underlying bullish patterns remain intact, shorter term
technical studies have clearly deteriorated with major corrective
weakness currently being experienced. Believe critical support
in and around the 2250/70 area could now come under fresh
examination and while interim demand should be anticipated in
the 2370/90 zone immediate recovery attempts should be
restricted by resistance which now starts at 2520/40. A clear
and sustained break above here is needed to relive the current
downward pressure and set up a return to the recent peaks in
the 2680/2700 region.
TRADING STRATEGY: Aside for time being and will now consider
probing short side on fresh bounces.

ZINC

Medium to longer term uptrends are still firmly intact with
preliminary indications suggesting the recent major corrective
phase to have now run its course. Believe local resistance waiting
in and around the 2560/80 area could now come under fresh
examination, which if decisively breached could extend gains
closer to the more important 2730/50 zone prior to better supply
being uncovered. Key nearby support remains in place in the
2410/30 region with a clear and sustained break beneath here
needed to trigger more serious falls and set up a challenge of the
2340/60 area.
TRADING STRATEGY: Aside for time being as fresh corrective
phase develops.

NICKEL

The medium term trend structure continues to flatten out with
prices firmly trapped within a fresh trading range for the time
being. Believe local resistances waiting at initially 19300/19400
and even 19700/19800 could now come under renewed
examination although unless a clear and sustained break above
here can be sustained further choppy consolidative activity is
likely for now. Nearby support starts in and around the
18100/18200 with a decisive move back under here now
required to extend falls closer to the more important
17300/17400 region.
TRADING STRATEGY: With profits on shorts secured will await
better levels ahead of re-establishing.

ZZ