Commodity Trading Tips for Nickel by Kedia Commodity

Ajay Kumar Kedia 14 August 2013

Nickel Nickel yesterday settled up 0.47% at 905.60 tracking LME nickel prices which overnight opened at $14,750/mt, with the high end of the price range $14,930/mt, and finding support at $14,676/mt. Finally, LME nickel prices closed at $14,757/mt, up $22/mt from the previous trading day. China's economic data boosted LME nickel prices, but due to a strengthening US dollar index, also news from Europe and US overnight was mostly positive. US retail sales in July rose for the fourth consecutive month, with core retail sales up 0.5%, the largest monthly growth since December 2012. Better-than-forecast retail sales data increased market confidence significantly, with the US dollar index and US stocks rising across the board. Barclays also raised expectations of US 3Q GDP growth to 2.2%. Germany's ZEW economic situations and climate index were both higher than expectations and June's; a RICS survey shows UK's home price index in June rose from 21 to 36, hitting a record high since November 2006, with Germany's political uncertainty decreasing. A most recent poll shows that supports for the governing party led by Merkel are 17 percentage points higher than its rival party. Merkel won the majority given low unemployment rate, fiscal deficit and short-term government bond yields and increasing income of the people, despite people do not support the government to bail euro zone countries in financial difficulties with massive capital. Technically market is getting support at 897.4 and below same could see a test of 889.2 levels, And resistance is now likely to be seen at 914.1, a move above could see prices testing 922.6. NICKEL