Commodity Trading Tips for Nickel by Kedia Commodity

Ajay Kumar Kedia 31 July 2013

Nickel Nickel yesterday settled up 1.27% at 822.30 despite of fall in LME price of nickel which experienced the biggest price decline of the day, dropping 1.6 percent on the LME to close at $13,587 per metric ton as worries over Chinese demand persist and supply forecasts continue to rise. But on MCX prices rosed as Indian rupee fell below the key psychological level of 60 to the dollar to a three-week low on Tuesday, posting its biggest fall in a month, as the central bank kept interest rates on hold and failed to announce any additional steps to defend the currency. For today market remain cautious ahead of major economic data from China and US and the US Federal Reserve's policy meeting. LME nickel prices fell again and were weighed down below all moving averages. LME nickel inventories continued to hit a record high, with prices hitting a three-week low of $13,460/mt. LME nickel prices opened low and moved lower, touching an intraday high of $13,770/mt after opening, and then fluctuating between $13,610-13,770/mt. LME nickel prices hit a low of $13,587/mt. European and US major economic data was mixed. US Conference Board's July CCI was only 80.3, the first decline in five months; annualized US home price index in July rose by 12.17%, the largest growth since March 2006; euro zone July economic climate index rose for the third consecutive month from 91.3 in June, to 92.5, the highest in 15 months. While the PBOC restarted reverse repurchasing yesterday for the first time in two months, injecting RMB 17 billion in the open market, with bidding rate of 4.4%, higher than 3.35% last time. The central bank took such a move to ease liquidity tightness. Technically market is getting support at 812.4 and below same could see a test of 802.5 level, And resistance is now likely to be seen at 828.9, a move above could see prices testing
835.5.