Nickel yesterday traded with the negative node and settled -0.31% down at 938 overall markets were quiet during European and US trading hours due to the holiday break. At the tail of trading, the yields on Spain's 10-year bonds surged to 6.47. Together with the news that Moody's cut the credit rating of 16 Spanish banks, LME nickel market came under downward pressures, with prices moving lower. Finally, LME tin prices ended at $16,998/mt, down $61/mt from a day earlier. The Greek opinion polls show that pro-bailout New Democracy party claimed a slight lead over anti-bailout Syriza party, helping improve market sentiment. The US dollar index dropped, sending metals prices up. As a result, metals experienced corrections along with profit-taking by investors. In addition, market concerns over Spain remained, and the yield on the country's bonds surged as a result. However, the news that Chinese government will introduce new stimulus measures gave support to the market. The easing of market concerns, the absorption of negative news and technical rebounds helped support LME nickel prices. Since market worries focus on the Greek debt issues, debt problems in Spain and Italy have been neglected. For today's session market is looking to take support at 935.6, a break below could see a test of 933.3 and where as resistance is now likely to be seen at 942.1, a move above could see prices testing 946.3.

Trading Ideas:

Nickel trading range for the day is 933.33-946.

Nickel dropped as yields on Spain's 10-year bonds surged to 6.47 and on news that Moody's cut the credit rating of 16 Spanish banks

Greek opinion polls show that pro-bailout New Democracy party claimed a slight lead over anti-bailout Syriza party

The news that Chinese government will introduce new stimulus measures gave support to the market.