Nickel yesterday traded with the negative node and settled -1.84% down at 1220 tracking LME nickel contract for delivery in three months opened at USD 27,450/mt and closed at USD 26,877/mt, down by USD 573/mt from a day earlier, with the highest price at USD 27,480/mt and the lowest price at USD 26,602/mt.
As investors' concern over geopolitical outlook improved to certain extent, crude oil prices closed slightly lower at USD 105/bbl. In addition, the possible interest rate hike from European central bank in April offset concern over the European sovereign debt issue.
However, market is still hunted by the Middle East turmoil, oil price and possible slower pace of global economy recovery. In this context, LME nickel prices will be still volatile in the short term.
For today's session market is looking to take support at 1194.4, a break below could see a test of 1168.8 and where as resistance is now likely to be seen at 1238.9, a move above could see prices testing 1257.8.
Trading Ideas:
Nickel trading range is 1168.8-1257.8.
Nickel dropped on worry of growing inflation will lead China and the Euro Zone to tighten monetary policy
Nickel looks to take support at 1206 and resistance is at 1234 level
Spread between nickel MAR & APR contracts traded in the range of -1.00 - 10.3.
