Nickel yesterday traded with the negative node and settled -2.69% down at 920.5 tracking LME nickel prices opened at USD 19,001/mt and closed at USD 18,647/mt overnight, down USD 613/mt, with the highest price at USD 19,149/mt and the lowest price at USD 18,600/mt.
Investors’ concern over the European debt crisis still haunted market, and Moody’s downgraded Spain's credit rating by two notches. Coupled with uncertainties of EFSF expansion, investors' confidence was further eroded.
Moody’s cut credit rating of Spain and Federal Reserve’s Beige Book indicated that the US economic growth in Sept was slight, further dimming economic outlook in Europe and the US Market sentiment was weighed, and LME base metal prices accelerated declines.
In addition, S&P's cut Slovenia’s credit rating from AA to AA-, with stable outlook. Market expectation over EU summit was pessimistic, believing that the summit would not come up with effective solution to European debt crisis.
In addition, the constant stock markets and weighed down base metal market as well. For today's session market is looking to take support at 910.9, a break below could see a test of 901.2 and where as resistance is now likely to be seen at 937.6, a move above could see prices testing 954.6.
Trading Ideas:
Nickel trading range is 901.2-954.6.
Nickel dropped tracking LME as investors’ concern over the European debt crisis still haunted market
Coupled with uncertainties of EFSF expansion, investors' confidence was further eroded
S&P's cut Slovenia’s credit rating from AA to AA-, with stable outlook
Courtesy: Kedia Commodities
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