Nickel yesterday traded with the negative node and settled -1.66% down at 997 tracking LME nickel prices which advanced slightly to hit a high of USD 21,350/mt during the Asian trading hours and early European trading hours. However, weighed by risk aversion sentiment during the evening trading hours, LME nickel prices began to fall and hit a low of USD 20,450/mt. Finally, LME nickel prices closed at USD 20,598/mt, down USD 468/mt. On Thursday, LME nickel prices opened low at USD 20,300/mt. Based on current performance of LME nickel prices, if LME nickel prices fall below previous support level of USD 20,200/mt, further support will be available at USD 20,000/mt. In domestic nickel spot market, spot prices will fall along with LME nickel price decline, and will move in the RMB 153,500-155,500/mt range on Thursday. Close attention should be paid whether or not Jinchuan Group will cut ex-works nickel prices. In yesterday's trading session nickel has touched the low of 991 after opening at 1015, and finally settled at 997. For today's session market is looking to take support at 984.2, a break below could see a test of 971.4 and where as resistance is now likely to be seen at 1016.6, a move above could see prices testing 1036.2.

Trading Ideas:

Nickel trading range is 971.4-1036.2.

Nickel dropped LME nickel prices weighed by risk aversion sentiment

Close attention should be paid whether or not Jinchuan Group will cut ex-works nickel prices

Spread between nickel SEP & OCT contracts yesterday traded in the range of 1.20 - 6.5.