Nickel settled down -0.2% at 1014.5 on concern that demand is ebbing in China, the world's top consumer of industrial metals. China's Central Work Economic Conference set five major tasks for 2015 on Thursday, putting it as a priority to maintain stable economic growth. The Chinese government pledged to focus on the balance of economic restructuring and growth to avoid sharp fluctuations in the economy. The Conference also emphasized the effectiveness in fiscal policy and flexibility in monetary policy, implying that the deficit rate may exceed 2.5% in 2015. Markets expect the government to unleash more accommodative monetary policy next year. Germany's CPI remained low in November, up 0.6% YoY. In the European Central Bank (ECB)'s targeted longer-term refinancing operation (TLTRO), only 129.84 billion euros were taken up by banks, way below forecasts. US November retail sales topped market expectations, but sluggish economic indicators from Germany and France, fueling market expectations that Europe will push quantitative easing policies and pushing up the US dollar index. LME nickel prices plunged to USD 16,325/mt, touching as high as USD 16,415/mt, but slumped late the day. During European trading, LME nickel prices fell to as low as USD 16,180/mt, but rebounded later. During US trading, LME nickel prices clawed back some losses and closed at USD 16,223/mt, down 0.78%. Technically market is under long liquidation as market has witnessed drop in open interest by -2.13% to settled at 4038 while prices down -2 rupee, now Nickel is getting support at 1009.3 and below same could see a test of 1004.1 level, And resistance is now likely to be seen at 1021, a move above could see prices testing 1027.5.

Trading Ideas:

Nickel trading range for the day is 1004.1-1027.5.

Nickel prices dropped on concern that demand is ebbing in China, the world's top consumer of industrial metals.

The U. S. Department of Labor said the number of individuals filing for initial jobless benefits in the week decreased by 3,000.

The upbeat data added to expectations that the Federal Reserve could raise interests sooner and faster than previously expected.