Commodity Trading Tips for Nickel by KediaCommodity

Ajay Kumar Kedia 12 September 2014

Nickel Nickel settled down -2.24% at 1117.60 continued to fall on easing deficit concerns, after members from the Philippines’ government signalled that any reform to the country’s mining laws, including a potential mineral ore export ban, could be some time away. The Philippines accounts for nearly all of China’s nickel ore and concentrate imports. LME nickel surged more than 7 percent in the past week on worries that a ban on supply from Philippines could compound a market seen in deficit next year, only to stage a vicious turnaround, as it transpired no ban was imminent giving back all the gains. Despite disappointing economic indicators from China and the US as well as escalating geopolitical tensions. China’s CPI rose 2.0% YoY in August, shy of market expectations for 2.2% and down from 2.3% in July, and its PPI fell 1.2% YoY, down for a 30th month in a row. These soft economic data, however, failed to raise expectations for stimulus policies due in large part to the Chinese Premier’s comments that the government will no longer rely on creating money to boost economic growth. The US Labor Department reported on Thursday that initial jobless claims for the week ending September 6 increased 11,000 to 315,000, a high last seen in the week ending June 28 and beating the estimated 300,000. Despite the downbeat jobs conditions, the US dollar index still rebounded after testing support at the 5-day moving average. The EU announced new sanctions on Russia oil and national defense sectors, but could lift them if Moscow abides by a ceasefire agreement. Technically market is under fresh selling and getting support at 1106.8 and below same could see a test of 1095.9 level, And resistance is now likely to be seen at 1137.8, a move above could see prices testing 1157.9.