Commodity Trading Tips for Nickel by KediaCommodity
Nickel yesterday traded with the positive node and settled 0.12% up at 956 after prices dropped last Friday on lower-than-economic data from the US. It was reported that the US March consumer confidence index unexpectedly fell, while February CPI growth was lower than market expectation in February and February's industrial output was flat on a monthly basis. Market players paid more attention to metal demand from China. The recent strong non-farm employment data and upbeat retail sales data from the US and the low likelihood of QE3 boosted the US dollar to rally. In response, the US dollar hit the highest level last seen in November 2011, but met strong resistance to climb further after profit-taking. The gains have come despite a shaky outlook on demand from China, and doubt is creeping in as to how much further prices can rally without a significant improvement from the metal-consuming giant. The tight supply of Russian nickel has eased to certain extent, so price spread between Jinchuan nickel and Russian nickel shall expand to reasonable levels. In yesterday's trading session nickel has touched the low of 954 after opening at 955.3, and finally settled at 956. For today's session market is looking to take support at 954.5, a break below could see a test of 953 and where as resistance is now likely to be seen at 957, a move above could see prices testing 958.
Trading Ideas:
Nickel trading range for the day is 953-958.
Nickel settled 0.12% up after prices dropped last Friday on lower-than-economic data from the US
It was reported that February CPI growth was lower than expectation and February's industrial output was flat on monthly basis
The tight supply of Russian nickel has eased, so price spread between Jinchuan nickel and Russian nickel shall expand