Commodity Trading Tips for Nickel by Kedia Commodity

NickelNickel settled down -2.67% at 941.20 as Investors turned away from risky assets as tension in Syria escalated. The UK drafted a program asking the UN Security Council to authorize the protection of Syrian civilians. Markets are worried that possible military attack on Syria will negatively affect Saudi Arabia and Iran - major petroleum producing countries, and interrupt global petroleum supply. As such, crude oil futures prices hit a 6-month high. Gold prices also hit record high since May due to its safe-haven appeal. European and US stocks, in contrast, fell. US existing home sales index slid 1.3% MoM to 109.5 in July, worse than the estimate of a 1% decline. A stronger US dollar also weighed on base metals prices. The market still focused on political situations in Syria. UK, France, Canada and League of Arab States advocated US to intervene as the al-Assad government used chemical weapons to attack civilians, and UK has drafted an UN resolution calling for protecting Syrian civilians with necessary measures. But Russia supported the al-Assad government. Market concerns thus increased, with crude oil and gold prices rising. Bank of England President believed UK economy did recover, and emphasized the importance of inflation target, and also reiterated his stance supporting easing policies. As mortgage interest rates rose, US existing home sales in July dropped for the second consecutive month by 1.3%, lower than expectations and June. Risk aversion sentiment resulting from Syria crisis will exert downward pressure on LME. Technically market is getting support at 911.4 and below same could see a test of 881.7 level, And resistance is now likely to be seen at 987.8, a move above could see prices testing 1034.5.

Trading Ideas:

Nickel trading range for the day is 881.7-1034.5.

Nickel ended with losses as major economic data from Europe and US fell short of expectations weighing on prices

As mortgage interest rates rose, US existing home sales in July dropped for the second consecutive month by 1.3%

Investors turned away from risky assets as tension in Syria escalated.