Technical forecast for LME

lme

Lead made it to our target of 2046/47 this week & traded lower to support at 1990/80 which did hold again as hoped. We have been hovering with in this range for 4 days now & closing around the same price each day but bulls can only feel confident if we close above 2046 now. Resistance today at 2011 then 2031 & the 2046/47 level above which should be very tough to beat. We could try shorts with a stop above 2062 for 2088/98 but this area could mark the high for the
week if tested.

There is a good chance that we are only taking a breath before the next break lower. The failure to beat 2046 this week is a concern so we must watch for a break below Oct lows of 1979 for continued losses to 1964 then 1944/42 & 1925 below.

Jason Sen began his career in the options pits on the trading floor of LIFFE in 1987 at the age of 19, making markets on his own account. In 2001 when the trading floor closed he successfully made the transition to day trading on computer screens. Jason always had an interest in technical analysis throughout his trading career but began to study this area in depth from 2006. www.daytradeideas.com has established itself as the leading provider of... More