Commodity Trading Tips for Nickel by KediaCommodity

NickelNickel settled up 2.03% at 889.10 after support seen from the update that China's Jinchuan has raised its nickel price, tracking gains in the metal's price on the London Metal Exchange. But Nickel prices failed to hold intraday highs of $14,000 per tonne at the close of trading on the London Metal Exchange on Wednesday September 18, as stocks rose to new record highs. The alloying metal has now more than halved in value since hitting post-crisis highs above $29,000 per tonne in February 2011, and is down 19.5% in the year to date. On Wednesday the three-month contract closed at $13,930 per tonne, up from $13,830 per tonne at the close of trading on Tuesday but below its intraday high of $14,044 per tonne. Investors were focused on the outcome of the Fed's two-day policy meeting, due to conclude later Wednesday. The central bank was expected to announce plans to start tapering its USD85 billion-a-month asset purchase program. A recent series of soft economic data raised doubts over how much the U. S. central bank will reduce its stimulus program, weighing on the dollar The Fed's stimulus program is viewed by many investors as a key driver in boosting the price of commodities as it tends to depress the value of the dollar. Technically market is under short covering as market has witnessed drop in open interest by -4.78% to settled at 3946 while prices up 17.7 rupee, now Nickel is getting support at 873.8 and below same could see a test of 858.6 level, And resistance is now likely to be seen at 898.5, a move above could see prices testing 908.

Trading Ideas:

Nickel trading range for the day is 858.6-908.

Nickel rose after support seen from update that China's Jinchuan has raised its nickel price, tracking gains in metal's price on LME.

A recent series of soft economic data raised doubts over how much the U. S. central bank will reduce its stimulus program

Markets in China will be closed today and tomorrow for the Mid-Autumn Festival holidays.