Nickel yesterday traded with the negative node and settled -1.21% down at 981.9 tracking LME nickel which opened at USD 20,130/mt and closed at USD 20,023/mt overnight, down USD 181/mt from a day earlier, with the highest price at USD 20,290 mt and the lowest price at USD 19,900/mt. LME nickel prices fluctuated narrowly due to absent of solid news. US dollar index advanced on better-than-expected initial jobless claim, while the euro slipped as the euro zone cut its 2012 GDP forecast. In response, LME nickel prices were weighed below USD 20,000/mt. Market has absorbed positive impact from improved Greek debt issue, and weak euro and relatively strong US dollar will not change significantly in the short term, which will weigh on LME nickel prices. News came mixed overnight. It was reported that the US initial jobless claim in the week ending on February 23rd was better than market expectation, boosting the US equity market. European Commission warned that the eurozone economy slipped in to recession again in early 2012, and is expected to contraction 2012. For today's session market is looking to take support at 974.2, a break below could see a test of 966.6 and where as resistance is now likely to be seen at 993.6, a move above could see prices testing 1005.4.

Trading Ideas:

Nickel trading range for the day is 966.63-1005.

Nickel prices dropped after the US dollar index advanced on better-than-expected initial jobless claim

It was reported that the US initial jobless claim in the week ending on February 23rd was better than market expectation

US dollar index advanced on better-than-expected initial jobless claim, and euro zone cut its 2012 GDP forecast