Nickel yesterday traded with the negative node and settled -0.06% down at 934.5 tracking LME nickel for delivery in three months opened at USD 18,250/mt and closed at USD 18,253/mt, up USD 28/mt, with the highest price at USD 18,506/mt and the lowest price at USD 18,150/mt. LME nickel prices moved stably during Monday’s Asian trading hours due to absence of solid news. However, during the European and US trading hours, base metal prices surged and LME nickel prices also advanced slightly to close at USD 18,253/mt amid US dollar index tumble as Ben Bernanke's remark of monetary loosing was interpreted by market as possible implementation of QE3. Federal Reserve Chairman Ben Bernanke expressed pessimism over employment market and hinted possible implementation of QE3, which inclined the US dollar index towards downward trend and the euro upward versus the US dollar. The high possibility of QE3 will weigh on the US dollar index, thus lending support for LME nickel prices. In yesterday's trading session nickel has touched the low of 928.3 after opening at 935.5, and finally settled at 934.5. For today's session market is looking to take support at 927.5, a break below could see a test of 920.5 and where as resistance is now likely to be seen at 942.2, a move above could see prices testing 949.9.

Trading Ideas:

Nickel trading range for the day is 920.57-950.

Nickel settled flat as failed to show gains despite of weakness in dollar and gains in other commodities

Fed's Ben Bernanke expressed pessimism over employment market and hinted possible implementation of QE3

The high possibility of QE3 will weigh on the US dollar index, thus lending support for nickel prices