Nickel yesterday traded with the negative node and settled -0.02% down at 917.30 tracking LME nickel market which closed at $16370/mt, up $110/mt from a day earlier. China announced July 9th the June CPI eased to 2.2%, helping support base metals prices. Later, the yield of Spain's 10-year bond climbing above 7% generated market worries, but market optimism over more incentive measures and profit-taking by the shorts sent nickel prices higher from the day's low. LME base metals overnight stabilized due to market expectations on the introduction of stimulus plans by the Euro zone and China. Market players expected more details on the measures proposed at June's EU summit to be discussed at the meeting of Eurozone finance ministers. However, market believe the final decision on these matters should take months, while policymakers will be under increasing pressures. Given the depressed market sentiment, investors placed high hopes on the meeting. It is expected China may further lower interest rate in 2H 2012, and will likely cut the reserve requirement ratio in July. For today's session market is looking to take support at 912.8, a break below could see a test of 908.3 and where as resistance is now likely to be seen at 921.8, a move above could see prices testing 926.3.

Trading Ideas:

Nickel trading range for the day is 908.37-926.

Nickel settled flat as China announced July 9th the June CPI eased to 2.2%

The yield of Spain's 10-year bond climbing above 7% generated market worries

News from Eurozone meeting has been reported that approximately 30 billion euros will be offered to Spain