Commodity Trading Tips for Nickel by KediaCommodity

Ajay Kumar Kedia 22 July 2014

Nickel Nickel settled up 1.21% at 1135.60 recovered from the day's low despite of the news that Indonesia has resumed some exports of metal ore concentrates after two firms gained permits, a mining ministry official said, the first shipments of their kind since the country changed its export rules in January. The rule change, which banned unprocessed ore exports and levied an escalating tax on metal concentrate shipments, was part of a policy to force miners to build smelters and process minerals domestically. LME nickel prices opened at USD 18,600/mt overnight, with the high end of the price range USD 18,894/mt, and finding support at USD 18,465/mt. On Monday, China's latest production data reignited concerns over China's housing market and the sizable metal stocks. In addition, the conflict between Israel and Palestine has caused hundreds to die, while the crashed Malaysia Airlines passenger jet may prompt the EU to impose further sanctions on Russia. Also the Chicago Fed national activity index was reported down and below forecast in June, fueling risk aversion in the market and pushing down US stock prices. Lastweek Nickel faced a hard time to advance since LME inventories stood around 58% higher year-to-date and continued to rise last week, posting a 1.2% weekly gain. Additionally, there is still a large potential for a retreat as the metal did not erase much gains it posted in the beginning of the year when Indonesia, the world's largest shipper, imposed a total ban on metal ore exports. Technically market is under short covering as market has witnessed drop in open interest by -19.13% to settled at 4757 while prices up 13.6 rupee, now Nickel is getting support at 1118.1 and below same could see a test of 1100.6 level, And resistance is now likely to be seen at 1145.5, a move above could see prices testing 1155.4.