Commodity Trading Tips for Nickel by KediaCommodity

Ajay Kumar Kedia 16 May 2013

Nicke Nickel yesterday settled down by -1.33% at 816.30 as pressure seen after Germany's Q1 GDP released in the afternoon was -0.2%, worse than the 0.2% expected, so nickel prices fell and break through 820. Euro zone Q1 GDP came at -0.2%, also lower than expectations and the previous month. The US industrial output fell a seasonally adjusted 0.5% in April. The capacity utilization rate meanwhile dropped from 78.3% in March to 77.8% in April. The US manufacturing output was off 0.4% in April, the largest decline since last October. Besides, the New York manufacturing activities also weakened unexpectedly in May. Thanks to a better-than-expected data for May later released by NAHB, market confidence was boosted, helping the US equities closed up to a new record high. Economic figures from the euro-zone area were disappointing. Preliminary data showed that eurozone GDP fell 0.2% in the first quarter, more than the expected 0.1% fall. The eurozone GDP dropped for a sixth consecutive quarter, the longest since its creation, and longer than that after Lehman went bankrupt, sparking market worries over its outlook. The French GDP registered negative growth for a second consecutive quarter, heading for a recession. It is the third French recession in four years. The GDP results in Italy and Germany also missed expectations. The European disappointing economic data raised market speculation over more easing monetary measures to be introduced by the ECB, sending the euro off 0.28% to a new 1-month low. Technically market is getting support at 809.8 and below same could see a test of 803.3 level, And resistance is now likely to be seen at 826.0, a move above could see prices testing 835.7.