Nickel settled up 1.17% at 889.70 as china's trade data released overnight was upbeat. Import and export value totaled USD 382.5 billion in January, with trade surplus expanding by USD 31.86 billion. LME nickel prices broke through the 20-day moving average, and soaring during European and US trading hours, touching USD 14,420/mt, and finally closing at USD 14,380/mt, up 1.47%. China's January trade data beat forecasts, with imports rising 10.0% YoY and exports up 10.6%, easing worries about waning demand from China. Meanwhile, comments from Federal Reserve Chair Janet Yellen continued to support sentiment. In her first congressional testimony on Tuesday, Fed Chair Yellen said that the central bank would taper the pace of its asset purchases at future meetings if the economy continued to improve as expected. She added that the pace of the central bank's bond purchases are not on a "preset course", while reiterating that Fed plans to hold interest rates at zero "well past" the time the jobless rate falls below 6.5%. Technically market is under short covering as market has witnessed drop in open interest by -3.2% to settled at 4470 while prices up 10.3 rupee, now Nickel is getting support at 883.1 and below same could see a test of 876.6 level, And resistance is now likely to be seen at 895.4, a move above could see prices testing 901.2.

Trading Ideas:

Nickel trading range for the day is 876.6-901.2.

Nickel prices ended with gains as support seen after China's trade data released overnight was upbeat

China's January trade data beat forecasts, with imports rising 10.0% YoY and exports up 10.6%, easing worries about waning demand from China

US will release its first-time jobless claims last week and January retail sales data.