Commodity Trading Tips for Nickel by KediaCommodity

Ajay Kumar Kedia 25 August 2014

Nickel Nickel settled down -0.88% at 1128.90 as the US dollar rose after US Fed Chair Yellen's speech last Friday sent a hawkish tone, this kept Nickel prices on the London Metal Exchange in check within a tight range. Meanwhile, European Central Bank President Mario Draghi stated that the euro weakened following a series of stimulus measures adopted in June, helping boost demand in the euro zone. He also called for eurozone fiscal policy to be more flexible, more spending as well as structural reforms. Investors were keeping a keen eye on the Kansas City Fed's annual Jackson Hole conference last Friday. US Federal Reserve Chair Janet Yellen said at the conference that the underutilization of labor resources still remained significant to the US economy and that the fall in unemployment exaggerated the health of the labor market. She added that the Fed is set to end the QE in October and will raise interest rates earlier than anticipated should the labor market continue to fare better than expected. The hawkish statements sent the US dollar index up to an 11-month high. Meanwhile no shortage in China's nickel market on small declines in NPI output, ore stocks at China's ports and growing LME inventories. Outbound shipments of nickel from China surged in June, and most of exports were for delivery to LME warehouses. China exported 16,625 tonnes of other unwrought non-alloy nickel in June, up 10,800 tonnes or 185% from May, China Customs showed. 7,504 tonnes of products were exported to Malaysia, accounting for 45% in total exports. Technically market is under long liquidation as market has witnessed drop in open interest by -6.54% to settled at 3604 while prices down -10 rupee, now Nickel is getting support at 1123 and below same could see a test of 1117.2 level, And resistance is now likely to be seen at 1137.1, a move above could see prices testing 1145.4.