Commodity Trading Tips for Nickel by Kedia Commodity

Ajay Kumar Kedia 26 August 2013

Nickel Nickel settled down -0.44% at 928.50 on profit booking on Saturday while on Friday prices rallied tracking LME nickel prices which overnight opened at $14,433/mt, with the high end of the price range $14,580/mt, and finding support at $14,319/mt. Finally, LME nickel prices closed at $14,535/mt, up $128/mt. The decline in US new home sales in July triggered anticipation that the US Fed will slow the exit of QE3. Business activity in the euro zone in August expanded at its fastest pace in more than two years and the German economy rebounded markedly in Q2, triggering expectations for robust base metal demand. Upbeat economic data in the euro zone pushed the euro up and dragged the US dollar index down, lifting commodity prices. Expectations that the Fed will slow tapering QE3 grew. US new home sales in July dropped by 13% MoM to 394,000 units, the lowest since October 2012, and the largest decline in three years. That is because of rising mortgage loan rate, and the market expects the Fed will not announce quitting QE3 at its meeting in September. Meanwhile, market players hoped the Fed will reconsider the tapering of QE3 at the Jackson Hole central bank meeting, boosting investor optimism. European economic data was positive. German seasonally adjusted Q2 GDP was 0.7%, in line with market expectations; the revised annualized UK Q2 GDP was 1.5%, higher than expectations and Q1; the preliminary CCI in 17 European countries in August was -15.6, the highest since July 2011, keeping the euro against the US dollar strong. The LME is closed today for the UK Summer Bank Holiday. Technically market is getting support at 921.7 and below same could see a test of 915 level, And resistance is now likely to be seen at 934.5, a move above could see prices testing 940.6.