Commodity Trading Tips for Nickel by KediaCommodity

Ajay Kumar Kedia 22 August 2013

Nickel Nickel settled down -0.04% at 929.50 tracking LME nickel prices which overnight opened at USD 14,725/mt, with the high end of the price range USD 14,753/mt, and finding support at USD 14,352/mt. Finally, LME nickel prices closed at USD 14,388/mt, down USD 347/mt from the previous trading day. Also Existing home sales in the US were 5.39 million units on an annualized basis in July, the highest since November 2009. This fuelled worries that the US Federal Reserve will wind down QE3 soon. Investors pulled out of the market, sending LME Nickel down. The minutes of the US Federal Reserve's latest policy meeting showed that QE3 will be ended at mid-2014, provided that economic data are in line with forecasts. However, there is no specific timetable for when to start tapering off the bond-buying program. The Fed will consider bringing QE3 to an end once unemployment rate falls to 7% and inflation reaches 2%. Many Fed officials are in favor of trimming monetary stimulus soon, so the Fed may probably begin to do so in September. An intense debate is going on about whether Greece will need another bailout. Olli Rehn, EU's Economic and Monetary Commissioner, said yesterday that new bailout is not the only option. Germany, France and the euro zone will announce manufacturing and service PMI for August today. Should all the figures are above 50, commodity prices will gain upward momentum. Technically market is under fresh selling as market has witnessed gain in open interest by 1.43% to settled at 4183 while prices down -0.4 rupee, now Nickel is getting support at 920.8 and below same could see a test of 912.2 level, And resistance is now likely to be seen at 941.2, a move above could see prices testing 953.