Commodity Trading Tips for Nickel by KediaCommodity

Ajay Kumar Kedia 26 April 2013

Nickel Nickel yesterday settled 1.08% up at 833.90 as a stream of poor economic indicators in Europe raised hopes for easier monetary policy and prompted short-covering. German business sentiment in April was worse than the most pessimistic of forecasts, hurting confidence already undermined by this week's series of weak manufacturing sector reports. This has fuelled hopes the European Central Bank could cut rates as soon as next week. Nickel prices dropped to near four-year lows this week as LME inventories have swollen to record highs, prompting some producers to consider shuttering operations. Nickel prices fell to $15,075 a tonne on Wednesday, the lowest since July 2009 while LME stocks are now at record peaks above 175,000 tonnes. While Russia's Norilsk Nickel, the world's largest nickel and palladium producer, may suspend operations at its Tati Nickel mine in Botswana after a sharp drop in metal prices, a company document showed on Wednesday. In the latest signs of a slowdown in economic activity, orders for long-lasting US manufactured goods recorded their biggest drop in seven months in March and a gauge of planned business spending rose only modestly. Also support seen after book-squaring in China, ahead of next week when markets will be closed for three days due to Labour Day holidays, fuelled short-covering in Shanghai. In yesterday's trading session nickel has touched the low of 820.3 after opening at 827.5, and finally settled at 833.9. For today's session market is looking to take support at 822.6, a break below could see a test of 811.4 and where as resistance is now likely to be seen at 842.7, a move above could see prices testing 851.6.