Commodity Trading Tips for Nickel by KediaCommodity

Ajay Kumar Kedia 27 February 2013

Nickel Nickel settled 0.61% up at 904.60 tracking LME nickel price slightly advanced to $16,741/mt after opening at $16,705/mt. However, a spate of negative news was announced later. First, China’s central bank conducted RMB 5 billion 28-day repos operation, sending signals to tighten liquidity. In addition, the stagnant election in Italy sent Portuguese 10-year government bond yields up 35 base points to 6.56% and Spanish 10-year government bond yields up 43 base points to 5.56%. In response, LME nickel prices fell to hit a low at $16,465/mt. Economic data were positive, including the US new housing sales for January, the CCI for February and the Richmond Fed manufacturing index for February. Coupled with improved market confidence following Bernanke’s testimony to continue loose monetary policy, nickel prices reversed bearish trend and rebounded strongly to close. Bernanke defended for the central bank's massive bond purchasing in testimony before Congress outweighed the market concern over the Italian presidential election. Fed intended to keep its stimulus policies going until hiring improves significantly, giving no hint of whether the central bank may curtail the so-called QE before the end of this year. Favorite leader of Democratic Party and his allies won more votes nationally than any other coalition, but by a slimmer margin than predicted by exit polls. Bersani's 1% slim margin and failure to win majority in the Senate will not be enough to give him control, which means Italy may have a second presidential election, which fueled concern over political stability in the euro zone. For today's session market is looking to take support at 894.1, a break below could see a test of 883.6 and where as resistance is now likely to be seen at 910.2, a move above could see prices testing 915.8.