Nickel yesterday traded with the positive node and settled 0.14% up at 1018.3 tracking LME nickel prices which opened at USD 21,400/mt, and closed at USD 21,299/mt overnight, down USD 52/mt from a day earlier, with the highest price at USD 21,450/mt and the lowest price at USD 20,950/mt.
LME base metal prices closed with losses cross the board overnight. During the Asian trading hours, the euro slipped and the US dollar index rallied to 77.46, due to investors' concern over slow progress in solving the European debt crisis.
In response, LME nickel prices slipped and found support at USD 20,950/mt. Market sentiment was strongly boosted, which was encouraged by the news that Germany would continue to support Greece and would not allow the Greece to exit the euro zone. Meanwhile, the Greece also said it would strictly implement austerity plan.
The US dollar pared certain gains and finally closed at USD 76.895. LME nickel prices also rebound and closed at USD 21,299/mt. Global economic condition is still sluggish, and the EU debt crisis is still market focus. In addition, market lacks solid news to boost base metal prices.
For today's session market is looking to take support at 1007.4, a break below could see a test of 996.5 and where as resistance is now likely to be seen at 1024.9, a move above could see prices testing 1031.5.
Trading Ideas:
Nickel trading range is 996.5-1031.5.
Nickel closed flat but still under pressure due to investors' concern over slow progress in solving crisis.
News that Germany would continue to support Greece and would not allow the Greece to exit the euro zone.
Greece also said it would strictly implement austerity plan which helped LME nickel prices to rebound.
Courtesy: Kedia Commodities
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