Nickel settled 1.2% up at 909.50 dropped from the day's high of 918 as pressure seen after the Moody's cut credit rating of French government bond from AAA to AA1, and put its credit outlook into negative. The credit cut weighed on nickel prices to settled below 912 level, However, as the US dollar fell below 81 points supported the prices all the way. Base metal prices slipped marginally at the tail of the trading and still closed with gains overnight. The Eurozone fm meeting did not come up with concrete result of the Greek aid issue, so some cautious players exited market. Before the meeting, market expected that the Eurozone financial ministers may reach preliminary agreement on the Greek bailout fund, even though they may fail to make official decision on the Greek bailout fund. It was reported earlier, Greece may receive the next payment of its bailout fund on Dec. 5 after European policymakers met in Paris to forge a common position on the issue. The result of Eurozone fm meeting will continue to influence base metal price movement. Although credit cut of French government bond weighed on market sentiment, base metal prices still slightly advanced, suggesting that market expectation over the result of European FM meeting was positive. In addition, market continues to focus the US financial cliff negotiation and the Eurozone fm meeting. For today's session market is looking to take support at 899.2, a break below could see a test of 889.0 and where as resistance is now likely to be seen at 918.8, a move above could see prices testing 928.2.

Trading Ideas:

Nickel trading range for the day is 889.03-928.

Nickel dropped after Moody's cut credit rating of French government bond from AAA to AA1

The result of Eurozone financial ministers’ meeting will continue to influence base metal price movement.

Markets participants also continued to monitor developments surrounding the looming “fiscal cliff” in the U.S