Nickel yesterday traded with the positive node and settled 0.38% up at 993 due to short covering on weekend. On Friday prices dropped after announcement of weaker than expected non-farm employment data fueled concern over the US economic recovery. The US non-farm employment data for August announced on last Friday was flat, the lowest since September 2010, and unemployment rate for August was unchanged at 9.1%. The weak employment data fueled market expectation that the US economy may slip into another recession. It is expected that base metal market will continue to be weighed by lower-than-expected non-farm employment data from the US and the ongoing European debt crisis. In the Shanghai nickel spot market, close attention should be paid to whether or not Jinchuan Group will adjust ex-works nickel prices. In yesterday's trading session nickel has touched the low of 985.5 after opening at 987.6, and finally settled at 993. For today's session market is looking to take support at 987.1, a break below could see a test of 981.1 and where as resistance is now likely to be seen at 997.4, a move above could see prices testing 1001.7.

Trading Ideas:

Nickel trading range is 981.1-1001.7.

Nickel yesterday traded with the positive node and settled 0.38% up due to short covering on weekend.

Close attention should be paid to whether or not Jinchuan Group will adjust ex-works nickel prices.

Spread between nickel SEP & OCT contracts yesterday traded in the range of 5.40 - 6.7.