Nickel settled up 0.72% at 893.7 after data from US showed that US GDP in Q3 was 4.1%, boosted market confidence. LME nickel prices overnight opened at USD 14,225/mt, with the high end of the price range USD 14,451/mt, and finding support at USD 14,191/mt. Finally, LME nickel prices closed at USD 14,451/mt, up USD 226/mt from the previous trading day. Trading volumes increased by 604 lots, to 4,681 lots, and total positions decreased by 510 lots, to 147,975 lots. Inventories grew by 624 mt, to 255,744 mt. European and the US economic reports released last week outperformed expectations. The final US real GDP grew at an annualized rate of 4.1% in Q3, well above the estimated 3.6% and the best reading since Q4 2011. The positive US GDP was mostly due to better-than-expected consumer spending during this period. The final US Q3 inflation, measured by the Personal Consumption Expenditures (PCE), rose 2.0% QoQ, higher than a 1.4% rise. The final UK Q3 GDP grew at an annualized rate of 1.9%, outperforming the forecasted 1.5%, while Germany's Gfk Consumer Sentiment Index for January surged to a 6-1/2-year high of 7.6. French business confidence rose to 100 in December, a high since September 2011. The US dollar index initially surged, but later fell back. The People's Bank of China (PBOC) injected more than RMB 300 billion into markets by last Friday. Excess reserves in Chinese banks have also exceeded RMB 1.5 trillion, a high level compared with the same period in past years. Now Nickel is getting support at 887.2 and below same could see a test of 880.7 level, And resistance is now likely to be seen at 897.5, a move above could see prices testing 901.3.

Trading Ideas:

Nickel trading range for the day is 880.7-901.3.

Nickel settled up after data from US showed that US GDP in Q3 was 4.1%, boosted market confidence.

European and the US economic reports released last week outperformed expectations.

Personal consumption expenditure (PCE) price index in Q3 also outran the 1.4% estimate to 2.0% at an annualized rate.