Nickel settled -0.04% down at 959.70 traded in the range tracking LME nickel which opened at $17,956/mt and closed at $18,000/mt overnight, down $128/mt from a day earlier, with the intraday high at $18,095/mt and the low at $17,800/mt. Most base metal prices drifted lower as Shanghai Composite Index fell to around 2,000 points. The lingering concern over Greek and Spanish debt issue continued to weigh on nickel prices, on the macroeconomic front, LME base metal prices largely closed with slight losses, as economic weakness and exacerbated concern over the European debt crisis capped gains of base metal prices in the short term. Ifo Institute for Economic Research in Munich announced on September 24th that IFO business climate index for September was 101.4, the fifth consecutive month recording decline. German Chancellor and French President were dividend at a meeting on when and how to establish European banking regulation institution. In addition, a large amount of longs trimmed position after profit-taking. What's more, the pre-holiday stock replenishment failed to materialize at China's base metal spot market, reflecting weak demand for base metals. For today's session market is looking to take support at 952.5, a break below could see a test of 945.3 and where as resistance is now likely to be seen at 965.6, a move above could see prices testing 971.5.

Trading Ideas:

Nickel trading range for the day is 945.3-972.

Nickel dropped as economic weakness and exacerbated concern over the European debt crisis capped gains

It was reported that the euro zone considered leveraging ESM from EUR 500 billion to EUR 2 trillion.

Spain's economy minister said the country would not rush to seek external financial aid