Commodity Trading Tips for Nickel by KediaCommodity

Ajay Kumar Kedia 14 March 2013

Nickel Nickel settled flat up at 924 giving up its all gain as tracking LME nickel prices which shrugged off negative impact from decline in China’s stock markets and advanced to hit a high at $17,167/mt but prices fell and closed $33/mt lower at $16,970/mt as the dollar index exceeded 83 mark on better than expected retail sales. The monthly rate of US retail sales for February was 1.1%, higher than 0.5% expected, rising for the fourth consecutive months, showing that the US economy is under recovery. This fueled the expectation that the Fed may tighten liquidity in advance, pushing up the US dollar and weighing down base metal prices. In addition, the US business inventory for January rose 1.0% MoM, and government deficit for February was $203.54 billion, lower than $205 expected. However, the picture is totally different in the euro zone. In addition, yielding rate of Italy’s medium and long-term government bond rose, showing that investors’ concern over political stability in Italy grew. The weak economic momentum, unstable political condition and strong US dollar index weighed down the euro by 0.58%. In China, Zhou Xiaochuan, President of the People’s Bank of China, expressed that to stable commodity price is central bank’s top priority in 2013. Meanwhile, growth for M2 was set at 13%, which means that monetary supply will be tighter than the previous two years. For today's session market is looking to take support at 919.8, a break below could see a test of 915.6 and where as resistance is now likely to be seen at 930.3, a move above could see prices testing 936.6.