Commodity Trading Tips for Nickel by KediaCommodity

NickelNickel settled down -0.48% at 879.40 dropped along with other metals as China's move to have small banks to set aside more funds to avoid a cash shortfall may curb demand from the top user of metals. China Banking Regulatory Commission branches asked some city commercial banks and rural lenders to strengthen liquidity management this year, according to three people with knowledge of the matter. The People's Bank of China signaled Feb. 8 that volatility in money-market interest rates will persist, underscoring investors' concerns that financial stresses could drag down growth in the second-biggest economy. LME nickel prices overnight meeting resistance at the 20-day moving average but found support from the 60-day moving average, showing shorts and longs were struggling and taking mixed attitude toward price trends. Jenet Yellen stated at the Congress, admitting the job market has been sluggish recently, but remained resolute to continue scaling back assets purchasing. The US dollar index then stopped falling, and LME nickel prices rallied and closed at USD 14,171/mt. China will release its import and export data in January. With the lack of important direction and improving US dollar index, LME nickel prices should move between USD 14,110-14,240/mt today. Technically market is under long liquidation as market has witnessed drop in open interest by -0.92% to settled at 4618 while prices down -4.2 rupee, now Nickel is getting support at 874.1 and below same could see a test of 868.8 level, And resistance is now likely to be seen at 885.7, a move above could see prices testing 892.

Trading Ideas:

Nickel trading range for the day is 868.8-892.

Nickel prices dropped despite the dearth of major news, markets were dominated by bearish sentiment.

US Fed Chairwomen's speech was basically in line with expectations, but US December retail sales missed forecasts.

Technically market is under long liquidation as market has witnessed drop in open interest by -0.92% to settled at 4618