Nickel yesterday traded with the positive node and settled 0.29% up at 920.8 tracking LME nickel market overnight opened at $17,850/mt, with the highest and lowest level of $17,950/mt and $17,650/mt, respectively. Finally, LME nickel market closed at $17,721/mt, down $90/mt from a day earlier. LME nickel prices climbed slightly yesterday, but as Spain will sell long-term government bonds later on Tuesday, LME nickel prices edged lower to close at $17,721/mt due to resurfacing investor concerns, down $90/mt. LME base metal prices failed to extend the upward trend overnight but moved on a downward track. Market concerns intensified ahead of Spain's government bond auction, since markets believe the bond auction will offer a fresh test of confidence in its economy. Spain will auction up to EUR 2.5 billion of two- and 10-year bonds. If Spanish yields keep rising or its bond sales are bearish, market concerns over Spanish financial conditions will intensify. It seems that markets are pessimistic toward Spain's government bond auction, weighing down global commodity markets. Spain's two- and 10-year bonds sales are the market focus today. Previously, market rumors reported that the successful Spanish bond sales were caused by human factor and the ECB was only interested in buying German government bonds, and these rumors weighed down base metal prices. LME nickel prices will move narrowly between $17,500-18,000/mt today ahead of Spain's government bond auction. For today's session market is looking to take support at 915.9, a break below could see a test of 911 and where as resistance is now likely to be seen at 927.3, a move above could see prices testing 933.8.

Trading Ideas:

Nickel trading range for the day is 911-934.

Nickel prices climbed slightly yesterday, but as Spain will sell long-term govt bonds prices can edged lower.

Market concerns intensified ahead of Spain's government bond auction.

CISA earlier said that the current high production level can't be sustainable given demand growth remains slow.