Nickel yesterday traded with the negative node and settled -0.78% down at 870.90 as pressure seen from the LME base metals prices which plunged since ECB did not take additional stimulus policies. ECB maintained interest rates unchanged, and ECB President Mario Draghi said a new mechanism will be released in a few weeks for direct open market operation, so as to stabilize loan costs of euro zone countries, depressing investors. Investors all sold goods. Base metals should weaken along with sliding economy. Investors hoping the corporate earnings season would signal a turning point in China's economic slowdown have been largely disappointed, with big manufacturers joining consumer companies to warn of flagging sales in the world's No.2 economy. LME nickel prices overnight opened at $15,600/mt, with the high end $15,688/mt, finding support at $15,236/mt. Finally, LME nickel prices closed at $15,317/mt, down $275/mt. In yesterday's trading session nickel has touched the low of 867.2 after opening at 879.5,and finally settled at 870.9. For today's session market is looking to take support at 864.5, a break below could see a test of 858.1 and where as resistance is now likely to be seen at 879.9, a move above could see prices testing 888.9.
Nickel trading range for the day is 858.17-889.
Nickel prices plunged since European central bank did not take additional stimulus policies
ECB President Draghi said a new mechanism will be released in a few weeks for direct open market operation
Coupled with downgrade of outlook of sovereign credit rating of Portugal to negative, market risk appetite waned