Nickel settled down -1.34% at 881.70 despite IMF raised its US economic forecast, with both S&P 500 and Dow Jones Industrial Average hitting new highs. However, commodities were not significantly boosted, as trading activity was dull before the Christmas. LME will be closed this Wednesday and Thursday due to the Christmas Day holiday and UK's Boxing Day. The Commerce Department said Friday that the U. S. economy expanded by 4.1% in the third quarter, well above initial estimates for 3.6% growth, adding to signs that the economic recovery is gaining traction. Also, the International Monetary Fund on Sunday raised its forecast for 2014 U. S. economic growth to 2.5%, up from the 1.6% it expects the country to grow this year. IMF Managing Director Christine Lagarde said on NBC's "Meet the Press" said that the recent budget deal in Washington and the Federal Reserve's decision to taper its bond buying program eased doubts about the future. The U. S. is second behind China in global copper demand. Meanwhile, investors continued to fret over tightening liquidity conditions and rising borrowing costs in the Chinese financial system. The benchmark seven-day repo rate jumped to 9.8%, the highest since June. Market players have remained cautious over the level of bad debt at Chinese banks, particularly when interbank lending rates are high. Technically market is under fresh selling as market has witnessed gain in open interest by 3.91% to settled at 4228 while prices down -12 rupee, now Nickel is getting support at 876.2 and below same could see a test of 870.6 level, And resistance is now likely to be seen at 891.9, a move above could see prices testing 902.

Trading Ideas:

Nickel trading range for the day is 870.6-902.

Nickel ended with losses due to profit booking despite of US CCI jumped due to the nearing Christmas holiday

Economic data from the US were upbeat with November personal consumption expenditures (PCE) up 0.5% on the month

US household spending in November was 0.5%, better than October's and expectations, with inflation outlook improving slightly.