Nickel settled up 0.8% at 1140.90 steadied before on Wednesday amid expectations of improving supply after signs that miner Newmont may get permission to restart concentrate exports from Indonesia. Also a series of US economic figures, released on Tuesday, were encouraging, while geopolitical strains in Ukraine eased some, both helping bolster base metals. US Conference Board’s consumer confidence index rose in August to 92.4, beating July’s reading of 90.3 and the expected 89, adding credence to the idea that US economic outlook is positive in H2 2014. Meanwhile the Richmond Fed Manufacturing Index climbed in August to 12, its highest since March 2011, while US durable goods orders for July grew 22.6% MoM, well above the estimated 8% increase, boosted by a sharp rise in transportation orders. Value of transportation orders in July amounted to USD 133 billion, far exceeding June’s USD 76.3 billion. Core durable orders excluding transportation equipment dwindled in the month 0.8% MoM, posting the biggest fall since the start of the year and undershooting a 3.0% rise in June. Russian President Vladimir Putin said at a meeting with and his Ukrainian counterpart Petro Poroshenko on Tuesday in Moscow that the Keiv government should resolve the current crisis through negotiations. Mr. Poroshenko called for the end of supplying arms to rebels in eastern Ukraine. This meeting is expected to help alleviate recent geopolitical tensions and reduce risk aversion sentiment. European and US stocks closed higher. LME base metals prices were mixed. Technically market is under short covering as market has witnessed drop in open interest by -4.93% to settled at 3198, now Nickel is getting support at 1133.4 and below same could see a test of 1125.9 level, And resistance is now likely to be seen at 1146.1, a move above could see prices testing 1151.3.

Trading Ideas:

Nickel trading range for the day is 1125.9-1151.3.

Nickel gained as a series of US economic figures were encouraging, while geopolitical strains in Ukraine eased some supported prices.

Richmond Fed Manufacturing Index climbed in August to 12, its highest since March 2011, while US durable goods orders for July grew 22.6% MoM

US Conference Board’s consumer confidence index rose in August to 92.4, beating July’s reading of 90.3 and the expected 89