Commodity Trading Tips for Nickel by KediaCommodity

NickelNickel yesterday traded with the positive node and settled 1.98% up at 928 tracking LME nickel which opened at $16,401/mt and closed at $16,750/mt, up by $322/mt from a day earlier, with the intraday high at $16,850/mt and the low at $16,401/mt, up $322/mt from a day earlier. As risk appetite grew amid stimulus from the US and the EU, LME nickel prices extended upward momentum, with positions and trading volumes climbing to intra-year high. LME base metal prices extended upward momentum and hit 5-month new highs overnight. The growing expectation over QE3 after disappointing nonfarm employment data for August from the US, and the ECB’s bond-buying plan strongly boosted investors’ confidence. In response, the US dollar was heavily weighed and base metal prices rallied across the board. However, risks still remain. Market concerns that the strict conditions attached ESM may restrict the ECB’s bond-buying plan. Meanwhile, the Fed interest rate decision shall also affect base metal price movement. In addition, China’s trade data released on September 10th were not optimistic, which may drag down LME base metal prices. For today's session market is looking to take support at 915.9, a break below could see a test of 903.8 and where as resistance is now likely to be seen at 936.8, a move above could see prices testing 945.6.

Trading Ideas:

Nickel trading range for the day is 903.8-946.

Nickel prices ended with gains as risk appetite grew amid stimulus from the US and the EU

The growing expectation over QE3 after disappointing nonfarm data and ECB’s bond-buying plan boosted confidence

German Constitutional Court’s decision on whether or not grant ESM is a risk window this week.