Nickel yesterday traded with the negative node and settled -1.45% down at 1030.4 yesterday LME market was closed, and  the US dollar index fluctuated below 75. LME nickel prices fluctuated widely last week. Early in the week, LME nickel prices fell to a low of USD 22,203/mt as the growing European debt crisis dampened momentum for a European economic recovery and pushed the US dollar significantly higher. In the middle of last week, positive statements from Goldman Sachs and other large investment banks boosted market confidence, helping LME nickel prices rebound. However, concerns over weaker nickel demand and a slower economic recovery due to tightening monetary policies from central banks may weigh on LME nickel prices. For today's session market is looking to take support at 1020.6, a break below could see a test of 1010.7 and whereas resistance is now likely to be seen at 1042.7, a move above could see prices testing 1054.9.

Trading Ideas:

Nickel trading range is 1010.7-1054.9.

China's imports of refined nickel will drop sharply as new nickel-pig-iron projects come online in next 2 year

Nickel is having resistance at 1042.70 and support at 1020.60 level.

Spread between nickel MAY & JUN contracts yesterday traded in the range of 2.10 - 10.6.