Commodity Trading Tips for Nickel by KediaCommodity

Ajay Kumar Kedia 22 August 2014

Nickel Nickel settled down -0.58% at 1138.90 due to risk aversion before Fed Chair Yellen’s speech due on Friday and downbeat China manufacturing PMI. The International Nickel Study Group (INSG) estimates that refined nickel markets moved from a deficit of 3.3kt in May to a surplus of 1.7kt in June. From January to June, the group estimates that world refined nickel markets were in a surplus of 11.8kt, down from 72.8kt for the same period last year. US initial jobless claims for the week ending on August 15 came in at 298,000, fewer than the expected 300,000, while continuing jobless claims fell to the lowest since June 2007. The nation’s Markit preliminary manufacturing PMI hit a 4-year high of 58, with all sub-indices up from July, indicating strong performance in the manufacturing sector. These upbeat economic figures boosted US stocks, but also fueled concerns over an earlier-than-anticipated interest rate hike by the US Fed. Kansas City Fed President Esther George warned that investors should not get too comfortable in the belief that Federal Reserve interest rate hikes are a long way off. In contrast, a series of economic reports from the euro zone were disappointing. The single currency area’s manufacturing PMI slid in August to 50.8, the lowest since July 2013, while its composite PMI dropped unexpectedly to 52.8. France manufacturing PMI fell further in August to a 15-month low of 46.5, but its composite PMI rebounded to 50. Technically market is under long liquidation as market has witnessed drop in open interest by -3.53% to settled at 3856 while prices down -6.6 rupee, now Nickel is getting support at 1131.2 and below same could see a test of 1123.6 level, And resistance is now likely to be seen at 1147.7, a move above could see prices testing 1156.6.