Commodity Trading Tips for Nickel by KediaCommodity

NickelNickel yesterday traded with the negative node and settled -1.89% down at 879 as investors remained cautious ahead of key US jobs data later this week for clues to the health of the world's largest economy. Technically prices remained under pressure below 900 level also pressure seen after weak manufacturing and employment data from the euro zone on Monday fuelled concerns over the outlook for growth. Meanwhile revised data showed that manufacturing activity in the euro zone contracted for the 20th consecutive month in March, while the jobless rate hit a record high of 12%. Sentiment also remained fragile amid concerns over the potential implications of a bailout for Cyprus. Market players now looked ahead to a number of economic reports from the US later in the day to further asses the strength of the country’s economy after data on Tuesday showed that US factory orders rose by the most in five months in February. The US was to release the ADP nonfarm payrolls report, while the Institute of Supply Management was release a report on US service sector activity later in the session. Meanwhile, in China, HSBC said its services purchasing managers’ index rose to a six-month high of 54.3 in March, while the official version of the services PMI rose to 55.6 in March from 54.5 in February. In yesterday's trading session nickel has touched the low of 878 after opening at 894, and finally settled at 879. For today's session market is looking to take support at 873.3, a break below could see a test of 867.6 and where as resistance is now likely to be seen at 889.3, a move above could see prices testing 899.6.

Trading Ideas:

Nickel trading range for the day is 867.67-900.

Nickel dropped as concerns about economic growth cast doubt on the global demand outlook for industrial metals.

In China, HSBC said its services purchasing managers’ index rose to a six-month high of 54.3 in March

Disappointment came from a U.S. jobs report that showed fewer-than-expected people hired in the private sector in March