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Market Summary –
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Nickel -Weekly Net Change
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Exchange
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Month
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W. High
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W. Low
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Close
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P. Close
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Net Change
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MCX
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June
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1049.5
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956.5
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972.5
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1036
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-63.50
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LME
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3M
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24300
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21152
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22400
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24000
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-1600.00
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LME
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Cash
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23950
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22500
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22255
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24030
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-1775.00
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Major Headline-
Nickel production this year may fall 2 percent after Apache Corp. shut a natural gas plant in Western Australia, Citigroup Inc. said. The Apache outage plus an earlier-than-planned rebuild of an Australian smelter may reduce nickel output by 32,000 metric tons this year, analysts Alan Heap and Alex Tonks wrote in a report dated June 13. ``Despite this we still see the nickel market as adequately supplied this year.''
INSG:
Nickel oversupply grew in April to the widest in eight months as demand receded for the third month in a row, according to the International Nickel Study Group.
Supply exceeded demand by 13,700 metric tons in April, the INSG report said. Production increased 6.1%, year over year, while consumption was 112,800 tons, off 0.9% from March.
Weekly Inventory:
Nickel inventory at LME decreased by 228 MT to 46860.00 MT during last week.
MCX Nickel June – Technical Outlook
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MCX Nickel June - Weekly Pivot Level
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Sup 3
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Sup 2
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Sup1
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Pivot
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Res 1
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Res 2
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Res 3
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843.17
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899.83
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936.17
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992.83
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1029.17
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1085.83
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1122.17
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Momentum studies are bearish but are now at oversold levels and will tend to support reversal action if it occurs. The daily stochastics have crossed over down which is a bearish indication. The stochastics indicators are decreasing from overbought level, which is bearish and should support lower prices.
Recommendations: Sell at 970-975 Target 940 and 925 SL986
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