Nickel yesterday traded with the positive node and settled 0.25% up at 1010.5 tracking a firm global trend and buying by speculators. In the Shanghai nickel spot market, Jinchuan Group raised ex-works nickel price by RMB 3,000/mt to RMB 161,000/mt along with last Friday’s LME nickel price hike. Boosted by Jinchuan Group’s price hike, traders’ confidence gradually resumed. With regard to market sentiment, 50% market players believe that nickel prices will rally this week, holding that Ben Bernnake’s remark has failed to trigger broad rally in base metal market, suggesting that market sentiment has stabilized to certain extent. In this context, LME nickel price will fluctuate higher last week. 30% market players expect that nickel prices will largely remain stable this week. As macro economic environment has not stabilized yet, LME nickel prices will continue to fluctuate. The remaining 20% market players believe that LME nickel prices may fall to certain extent this week. The soft domestic demand, coupled with weak momentum of LME nickel prices will drag down domestic nickel prices to certain extent. For today's session market is looking to take support at 1000.5, a break below could see a test of 990.6 and where as resistance is now likely to be seen at 1020.9, a move above could see prices testing 1031.4.

Trading Ideas:

Nickel trading range is 990.6-1031.4.

Nickel yesterday traded with the positive node tracking a firm global trend and buying by speculators

Jinchuan Group raised ex-works nickel price by RMB 3,000/mt to RMB 161,000/mt

Boosted by Jinchuan Group’s price hike, traders’ confidence gradually resumed.