Commodity Trading Tips for Nickel by KediaCommodity

Ajay Kumar Kedia 23 May 2013

Nickel Nickel yesterday traded with the positive node and settled 1.68% up at 844.3 as two US Federal Reserve officials statement expressed their support for QE supporting prices. US Federal Reserve Chairman Bernanke's speech last night came under the spotlight. Bernanke explicitly expressed support for QE3 in his testimony, boosting market sentiment and helping US stocks hit a new record high. Nevertheless, during the Q&A session, Bernanke said that the FOMC may scale back asset buying during policy meetings to come and that whether or not to curtail bond purchases depends on how economy evolves. The minutes of the May policy meeting indicate that a majority of Fed officials are in favor of using future economic data as the basis for deciding whether to slash accommodative monetary policy or not. In response, US shares pulled back from high levels and ended in negative territory. The US dollar index rebounded to hit a fresh high since July 2010. The US existing home sales were 4.97 million units in April, missing forecasts and weighing on base metal prices. According to the minutes of the interest rate meeting by the Bank of Japan (BOJ), the BOJ will continue to expand monetary by JPY 6-7 trillion each year and keep interest rate unchanged at 0-0.1%. Meanwhile, the BOJ revised the country's current economic situation as “on the rise, a fifth straight month of hike in economic situation assessment. In yesterday's trading session nickel has touched the low of 831.5 after opening at 832.4, and finally settled at 844.3. For today's session market is looking to take support at 834.6, a break below could see a test of 824.8 and where as resistance is now likely to be seen at 851, a move above could see prices testing 857.6.