Commodity Trading Tips for Nickel by KediaCommodity

Ajay Kumar Kedia 12 September 2013

Nickel Nickel settled up 0.28% at 873.50 was steady on Wednesday as prospects for improved strength in China's economy and reduced risk of a US strike on Syria, offset concern about growing stockpiles of the metal and US plans to taper monetary stimulus. Uncertainty about next week's US Federal Reserve meeting is keeping copper investors cautious, even though last week's disappointing US jobs data convinced many that any stimulus withdrawal will probably be gradual. At the same time recent upbeat economic data in China increased confidence about demand for industrial metals in the world's largest commodities buyer. Appetite for basemetals seen as a risky asset, improved slightly on news that Syria accepted a Russian proposal on Tuesday to give up chemical weapons. Headline China trade data this week showed overall imports and exports in August were stronger than expected, indicating that the world's top commodity buyer may have avoided a sharp slowdown. On Tuesday, data showed China's annual industrial output rose 10.4 percent in August. Meanwhile, investors continued to speculate over the timing of the Federal Reserve's widely expected reduction in monthly bond purchases following last week's weaker-than-forecast US jobs report. Traders have closely been looking out for US data reports recently to gauge if they will strengthen or weaken the case for the Fed to reduce its bond purchases. The central bank is scheduled to meet September 17-18 to review the economy and assess policy. The Fed's stimulus program is viewed by many investors as a key driver in boosting the price of commodities as it tends to depress the value of the dollar. Technically market is getting support at 866.8 and below same could see a test of 860 level, And resistance is now likely to be seen at 882.7, a move above could see prices testing 891.8.