Commodity Trading Tips for Nickel by Kedia Commodity

NickelNickel yesterday traded with the positive node and settled 1.6% up at 932.3 surged on the first trading day of the new quarter Monday, after upbeat manufacturing data from China and the United States calmed worries over demand prospects for industrial metals. A stream of new orders buoyed factory activity in China to an 11-month high in March, according to the official PMI, but credit-constrained smaller manufacturers struggled, suggesting the economy was still losing steam. US data showed the pace of growth in the manufacturing sector had picked up a tad in March, underscoring views about how the economy is recovering at a gradual clip even as February construction spending figures disappointed. Elsewhere, data showed the euro zone's manufacturing sector in March shrank for an eighth month and at a faster pace, adding to signs the bloc is in recession as the downturn spreads to core members France and Germany. London nickel futures have risen just 1 percent this year, making it the worst performing metal in the complex, though some analysts are now turning more optimistic, saying the selling has been overdone given changing fundamentals. The LME nickel price is now trading below domestic prices in China, which makes buying imports more attractive, and currently prevailing price levels are trading below cash production costs for some nickel pig iron production in China. For today's session market is looking to take support at 920.4, a break below could see a test of 908.6 and where as resistance is now likely to be seen at 941.2, a move above could see prices testing 950.2.

Trading Ideas:

Nickel trading range for the day is 908.63-950.

Nickel surged after upbeat manufacturing data from China and US calmed worries over demand prospects for metals

A stream of new orders buoyed factory activity in China to an 11-month high in March, according to the official PMI

Spot nickel premiums in China rose by $20-50 this week, as falling prices on LME attracted buyers back into the market.