Nickel yesterday traded with the negative node and settled -0.28% down at 1291.9 tracking LME nickel prices which opened at USD 28,450/mt and closed at USD 28,500/mt, up by USD 50/mt from a day earlier, with the highest price at USD 28,713/mt and the lowest price at USD 27,998/mt. Commodity prices were still weighed by the Middle East unrest. Coupled with tightening concern from China, performance of base metal prices was still sluggish on February 23rd. LME nickel prices slipped and fell below 20-day moving average after slight rally in early trading, but prices began to fluctuate weakly after rebounding to USD 31,500/mt and finally closed above flat level. Investors concerned that rally in energy prices may lead to high inflation, forcing China and other major base metal consuming countries to hike interest rate. In yesterday's trading session nickel has touched the low of 1266 after opening at 1290.7, and finally settled at 1291.9. For today's session market is looking to take support at 1272.8, a break below could see a test of 1253.6 and where as resistance is now likely to be seen at 1304.3, a move above could see prices testing 1316.6.

Trading Ideas:

Nickel trading range is 1253.6-1316.6.

China's Jinchuan plans 130-140 kt nickel output in 2011

Nickel looks to take support at 1278 and resistance is at 1305 level

Spread between nickel FEB & MAR contracts yesterday traded in the range of 4.30 - 8.

YESTERDAY LME STOCK FOR NICKEL CAME DOWN  BY -522