Nickel yesterday traded with the positive node and settled 0.57% up at 940.00 but pressure continuous to mount on higher side as a stronger dollar and as investors began to wonder if recent measures announced by European leaders were enough to tackle the euro zone debt crisis. Trading is expected to remain cautious ahead of a ECB meeting on Thursday, which may now have to produce more than a sharp interest rate cut to ease market doubts over the ECB rescue fund's ability to lower borrowing costs for indebted members such as Spain. LME nickel prices overnight opened at $16,706/mt, with the high end $17,390/mt, finding support at $16,706/mt. Finally, LME nickel prices closed at $17,220/mt, up $490/mt. As the market was expecting euro zone will lower interest rates and England will expand government bonds purchasing plan, base metal prices and stocks rose significantly. Eurozone inflation continued to fall, with increasing likelihood of European central bank lowering interest rates. Mainstream opinion is that European central bank will lower interest rates by 25bps. In yesterday's trading session nickel has touched the low of 933.6 after opening at 936, and finally settled at 940. For today's session market is looking to take support at 933.1, a break below could see a test of 926.2 and where as resistance is now likely to be seen at
947.4, a move above could see prices testing 954.8.

Trading Ideas:

Nickel trading range for the day is 926.2-955.

Nickel gained expecting euro zone will lower interest rates and England will expand government bonds purchasing plan

Eurozone inflation continued to fall, with increasing likelihood of european central bank lowering interest rates.

Investors were also eyeing the outcome of the ECB's policy meeting amid growing expectations for a rate cut.