Commodity Trading Tips for Nickel by KediaCommodity

Ajay Kumar Kedia 23 July 2014

Nickel Nickel settled up 0.88% at 1145.6 as market sentiment improved after data showed US home price index in May topped market expectations. Rumors that Chinese traders will import nickel ore in the name of iron ore was confirmed untrue, helping ease market concerns. US existing home sales rose in June to a refreshed 8-month high of 5.04 million, beating expectations, which indicated the country’s sturdy economic recovery. US core CPI climbed only 0.1% in June, shy of the estimated 0.2% increase. These encouraging economic reports gave a boost to market sentiment, with the Standard & Poor’s 500 index setting new highs. The People’s Bank of China (PBOC) reported that China’s forex receipts at financial institutions dwindled RMB 88.3 billion to RMB 29.45 trillion in June, down for the first time after rising in 10 straight months. The fall in forex receipts suggests that China’s injection of liquidity looks set to change. Market sentiment should remain bullish on Wednesday since HSBC’s China manufacturing PMI is expected to come in positive on Thursday. LME nickel prices opened at USD 18,810/mt overnight, with the high end of the price range USD 19,200/mt, and finding support at USD 18,810/mt. Finally, LME nickel prices closed at USD 19,099/mt, up USD 227/mt from the previous trading day. LME nickel inventories were up 150 mt to 311,214 mt. PMIs from China, Europe and US will be released tomorrow, and Chinese economic data is optimistic. Technically market is under fresh buying as market has witnessed gain in open interest by 0.57% to settled at 4784 while prices up 10 rupee, now Nickel is getting support at 1135 and below same could see a test of 1124.5 level, And resistance is now likely to be seen at 1155.4, a move above could see prices testing 1165.3.