Commodity Trading Tips for Nickel by KediaCommodity

Ajay Kumar Kedia 22 January 2014

Nickel Nickel settled up 1.92% at 912.20 as Indonesia's ban on unprocessed ore exports crimps supply, according to Goldman Sachs Group Inc. Nickel climbed 4.8 percent this year, the most among the six major metals on the LME as Indonesia restricted shipments starting Jan. 12. In the US, Fed may reportedly cut QE by another USD 10 billion after its January policy meeting scheduled on January 28-29 and is expected to continue trimming the asset purchases by USD 10 billion per month. In Europe, the ZEW Economic Sentiment for Germany edged lower to 61.7 in January, down from an eight-year high of 62.0 seen in December 2013 and missing the 64.0 estimate. However, the index tracking current conditions rose from 32.4 to 41.2. The ZEW Economic Sentiment for the euro zone surged from 68.3 to 73.3, with current conditions indicator also improving from -54.4 to -48.2. The People's Bank of China conducted seven-day reverse repos worth RMB 75 billion and RMB 180 billion of 21-day reserve repos following its cash injection via SLF, injecting a net RMB 255 billion in a single day, a high last seen during 2013's Chinese New Year holiday. In addition, the PBOC will also auction 40 billion of three-month treasury deposits on Thursday, to ease liquidity tightness around the Chinese New Year holiday. Chinese stock market closed higher as a result. Technically market is under fresh buying as market has witnessed gain in open interest by 28.07% to settled at 7542 while prices up 17.2 rupee, now Nickel is getting support at 896.1 and below same could see a test of 879.9 level, And resistance is now likely to be seen at 920.6, a move above could see prices testing 928.9.