Nickel yesterday traded with the positive node and settled 0.31% up at 1042.7 tracking LME nickel which opened at USD 20,710/mt and closed at USD 21,039/mt overnight, up by USD 302/mt from a day earlier, with the highest price at USD 21,150 mt and the lowest price at USD 20,549/mt. China’s PMI for January was above 50, but market was less encouraged by the data and LME nickel prices still fluctuated during Asian trading hours. However, LME nickel prices advanced to certain extent and finally closed at USD 21,039/mt from positive PMI from Germany, the UK and the US. Upbeat PMI from major economies boosted market. However, the unclear trend of debt sales in the euro zone and lingering Greek debt crisis significantly dampened upward momentum of LME nickel prices. Meanwhile, US economic data shows that the employees in US private sector grew steadily, and construction spending increased as well. In yesterday's trading session nickel has touched the low of 1023.5 after opening at 1036, and finally settled at 1042.7. For today's session market is looking to take support at 1029.5, a break below could see a test of 1016.3 and where as resistance is now likely to be seen at 1049.9, a move above could see prices testing 1057.1.

Trading Ideas:

Nickel trading range is 1016.3-1057.1.

Nickel prices advanced and closed above 1040 level as support from positive PMI from Germany, the UK and the US.

Upbeat PMI from major economies boosted market, however, the unclear trend of debt sales in the euro zone linger.

China’s PMI for January was above 50, but market was less encouraged by the data