Commodity Trading Tips for Nickel by KediaCommodity

Ajay Kumar Kedia 17 May 2013

Nickel Nickel yesterday traded down -0.16% at 815 on concern about lacklustre demand that was compounded by evidence the European and US economies are still struggling. The US economic results announced yesterday were disappointing. The April housing starts fell 16.5% to 853,000, below market expectations, but building permits beat market estimate, up 14.3%. The labor market was disappointing. The latest initial jobless benefit claims rose to 360,000, above market expectations and higher than the previous data. The Philadelphia Fed manufacturing index decreased to -5.2 in May. Besides, the April consumer prices rose 1.1% on a yearly basis, well below market estimate and the previous data. Following the data release, Goldman Sachs cut the US GDP to 2.0% in the second quarter, and market speculation over the exit from existing monetary measures also increased. As dove officials in the US Federal Reserve (Fed) later said the Fed may consider adjusting its policy this summer at its earliest, the dollar weakened. The Eurostat reported March's trade balance fetched a surplus of 18.7 billion euros on a seasonally basis, showing that eurozone exports grew for a third consecutive month. In March, exports grew 2.8% from February's 0.2%, and imports fell 1%, down much from February's decline. The release signals the improvement in the region, but internal demand remains weak. Hence, market confidence was still low, and the euro closed off 0.03%.Technically market is under fresh selling as market has witnessed gain in open interest by 10.77% to settled at 20439 while prices down -1.3 rupee, now Nickel is getting support at 811.2 and below same could see a test of 807.4 level, And resistance is now likely to be seen at 819.2, a move above could see prices testing 823.4.