Commodity Trading Tips for Nickel by Kedia Commodity

Ajay Kumar Kedia 16 August 2013

Nickel Nickel on Wednesday settled up 0.41% at 909.3 driven by above-expected Q2 GDP data for Germany, France, and the Eurozone. The US PPI for July was flat with June, implying there was almost no inflationary pressure in the country. However, rising bond yields precipitated a fall in US stocks, constraining upward momentum of base metals. Power consumption across China hit 495 billion kwh in July, up 8.8% YoY and 2.5 percentage points higher than June, according to China's National Energy Administration. German and French Q2 GDP rose by 0.3% and 0.2% respectively, and euro zone Q2 GDP fell by 0.7%, better than the forecast of a 0.8% decline and a decline of 1.1% in Q1, but the euro against the US dollar only rose by over ten basis points. The number of US initial jobless claims last week was 320,000, the lowest in six years, meaning US job market continues to improve. US CPI in July before seasonally adjustment rose for the third consecutive month to 2.0%, the largest growth since February 2013; housing builder confidence increased to the highest in August since 2005, up from 56 in July to 59. US industry output in July remained unchanged from June, and manufacturing output fell by 0.1%, both lower than expectations and June's level; Federal Reserve Bank of Philadelphia's manufacturing index in August was 9.3, well below the forecast of 15.0. The market was focused on improving employment data and rising inflation, with expectations that QE3 will be tapered off in September growing, pushing down US stocks. Technically market is under short covering as market has witnessed drop in open interest by -4.34% to settled at 6289 while prices up 3.7 rupee, now Nickel is getting support at 903.70 and below same could see a test of 898.10 level, And resistance is now likely to be seen at 913.10, a move above could see prices testing 916.90.