Nickel yesterday traded with the negative node and settled -0.22% down at 904 on some profit booking at weekend after prices gained Friday as investor optimism on the European and U. S. economies bolstered prospects for industrial-metal demand. The International Monetary Fund may play a larger role in solving Europe's debt crisis, and the U. S. unemployment rate in November unexpectedly dropped to a 32-month low. A gauge of industrial metals climbed this week after a November slump. The metal has dropped 28 percent this year as global economic woes eroded demand, while supplies increased. Last Friday's non-farm employment data from the US were up
120,000, better than the previous reading of 80,000. Meanwhile, the US unemployment rate for November unexpectedly fell to 8.6%, the lowest since March 2009. Economic data from the US greatly boosted risk appetite and drove commodities and other risk assets to move higher. In addition, positive impact from domestic and overseas monetary policies remained in market sentiment. LME base metal prices were inspired again, and largely advanced across the board last Friday. In yesterday's trading session nickel has touched the low of 903.3 after opening at 908, and finally settled at 904. For today's session market is looking to take support at 902.2, a break below could see a test of 900.4 and where as resistance is now likely to be seen at 906.9, a move above could see prices testing 909.8.

Trading Ideas:

Nickel trading range is 900.4-909.8.

Nickel yesterday traded with the negative node on some profit booking at weekend after prices gained Friday

International Monetary Fund may play a larger role in solving Europe's debt crisis

Economic data from US greatly boosted risk appetite and drove risk assets to move higher