Nickel yesterday traded with the positive node and settled 0.23% up at 881.20 gainer on the London Metal Exchange, with speculative appetite lending support to prices despite bearish fundamental indicators. In addition, suggestions from a senior Indonesia government official Wednesday that Jakarta is softening its stance on an ore export ban in 2014 may spark expectations for higher nickel supply next year. Indonesia is a major exporter of nickel ore to China, and changes in its mining laws are closely watched for clues on the metal's fundamentals. Also the yields of Italy’s 3-year government bonds recorded a one-month low, sending the euro to a six-week high and helping commodity prices rebound. The US Labor Department announced last night that the country’s initial jobless claims fell to seasonally adjusted 346,000 in the week ended April 6, a decrease of 42,000 and the biggest weekly decline since mid-November last year. This helped alleviate worries over disappointing US non-farm payrolls released earlier. In response, US stock markets closed up, with the Dow Jones and S&P 500 both hitting new highs again. Encouraging US economic indicators and softer US dollar will help prices. In yesterday's trading session nickel has touched the low of 872.7 after opening at 880.4, and finally settled at 881.2. For today's session market is looking to take support at 874.7, a break below could see a test of 868.2 and where as resistance is now likely to be seen at 885.7, a move above could see prices testing 890.2.

Trading Ideas:

Nickel trading range for the day is 868.2-890.

Nickel gained on a weaker dollar and after strong U.S. jobs data lifted sentiment about the outlook for global metals demand.

The yields of Italy’s 3-year government bonds recorded a one-month low, and helping commodity prices rebound.

US Labor Department announced last night that country’s initial jobless claims fell to seasonally adjusted 346,000