Commodity Trading Tips for Nickel by KediaCommodity

Ajay Kumar Kedia 5 August 2014

Nickel Nickel settled up 0.45% at 1131.80 rebounded from the biggest monthly drop since November as stronger than expected manufacturing data in China, the largest metals consumer, signaled improving demand. Nickel faced a strong headwind for a rise last week and but was strong enough not to succumb to pressure and end the week with almost a 3% gain. Despite a mild gain last week, the metal, which was the top performer in the beginning of the year when Indonesia eventually imposed a ban on metal ore exports, now is mostly headed downwards as global inventories remain high despite restricted supplies. China’s State Council announced on Monday that the number of low-income houses renovated in 2013 hit more than 3.2 million and is expected to exceed 4.7 million this year. The chief administrative authority also urged local governments to approve plans on low-income housing renovation in a more efficient and timely manner. The central government will also step up its effort to support low-income housing renovation by establishing a mature system of issuing debts by local governments. This, combined with encouraging manufacturing reports released earlier, boosted market sentiment, sent China’s stocks surging and base metals prices rebounding markedly. The euro zone’s PPI fell 0.8% YoY, beating expectations, and rose 0.1% MoM in June, up for the first time in six months. It was worth noting that officials from Portugal and the EU clinched a EUR 5 billion deal to help rescue the largest bank in Portugal after holding an emergency meeting over the weekend, lifting market sentiment. Technically market is under short covering and getting support at 1124.2 and below same could see a test of 1116.6 level, And resistance is now likely to be seen at 1137.6, a move above could see prices testing 1143.4.