Commodity Trading Tips for Nickel by Kedia Commodity

Ajay Kumar Kedia 3 July 2013

Nickel Nickel yesterday settled up 0.69% at 837 despite investors are eyeing the US non-farm employment due on Friday. It was announced last night that the US auto sales and factory orders grew in June and home prices rose 12% YoY in May to hit a 7-year high. Nevertheless, investors fear that the US employment data to be released later in the week may prompt the US Federal Reserve to scale back debt-buying program. The US dollar index closed 0.65% higher, offsetting positive effects on commodity markets from upbeat auto sales and factory orders. Some investors pulled out of the US financial markets ahead of the Independence Day, causing US shares to inch down. US data released overnight were upbeat. Although US July IBD/TIPP economic sentiment index was 47.1, below expectations and the previous month, US May factory orders rose by 2.1%, compared to 1% in the previous month. US home prices in May increased by 12%, the largest growth in seven years, and US June automobile sales also grew steadily, and are expected to hit a record high in five and a half years. Last week, the ECB, IMF and EC returned to Greece to assess if the country will receive additional EUR 8.1 billion of bailout funds as planned. It was believed international creditors will likely refuse to pay additional bailout funds and will pay the EUR 8.1 billion bailout funds in three batches to put pressure on Greece and require Greece to accelerate reform. The ECB, IMF and EC may also require Greece to use additional tightening policies. Market capital thus flowed to the US dollar, pushing up the US dollar index by 0.5. Technically market is getting support at 830.2 and below same could see a test of 823.4 level, And resistance is now likely to be seen at 842.9, a move above could see prices testing 848.8.