Nickel settled up 0.97% at 1080.40 recover on last day after Nickel sank to its lowest price in about a month on Thursday on persistent profit-taking after months of rallying based on expectations that an Indonesian ban on ore exports would lift the physical market. Nickel so far, up 30 percent so far in 2014, has been by far the best performing base metal after top producer Indonesia imposed a ban on shipments of unprocessed ore in January. It hit a 27-month peak of $21,625 a tonne on May 13, but then prices have since slipped with some investors believing the rally may have been overdone. Indonesian government officials met with major foreign miners on Friday, with the chief economics minister hoping a quick deal can be reached to overcome a controversial tax that has halted concentrate exports for five months. The tax is part of a government drive to force miners to build smelters and processing plants in Southeast Asia's largest economy, but a lack of progress in resolving the dispute has led Newmont to declare force majeure and Freeport to slash output. Investors are likely to monitor economic data from China closely to gauge the health of the world's top copper consumer as the economy has had a soft start to the year. The Chinese economy showed some signs of stabilising in May as the government unveiled more stimulus measures, but signs of further deterioration in the property market indicate more policy support may be needed. Technically market is under short covering as market has witnessed drop in open interest by -9.57% to settled at 6719. Now Nickel is getting support at 1063.7 and below same could see a test of 1046.9 level, And resistance is now likely to be seen at 1093.2, a move above could see prices testing 1105.9.

Trading Ideas:

Nickel trading range for the day is 1046.9-1105.9.

Nickel rose on short covering as prices recovered sank to its lowest price in about a month on Thursday.

China's industry output in May was up 8.8%, with the growth up 0.1% YoY.

In the U.S., data released Friday showed that that U.S. consumer sentiment unexpectedly deteriorated in June.