Nickel yesterday traded with the negative node and settled -0.73% down at 1013.5 tracking LME nickel prices which opened at USD 21,600/mt and closed at USD 21,006/mt overnight, down USD 499/mt from a day earlier, with the highest price at USD 21,6000/mt and the lowest price at USD 20,898/mt.
LME nickel prices fell rapidly below USD 21,200/mt, and largely moved between USD 21,000-21,200/mt and hit a low of USD 20,898/mt due to concern over economy in the US and EU.
Finally, LME nickel prices closed at USD 21,006/mt, down USD 499/mt from a day earlier. The delay of a new round aid package for Greece and weaker-than-expected US home data disappointed market.
On Monday, no positive result was achieved at the euro zone finance ministers' meeting, and market concerned further tight monetary policy from China, with sluggish sentiment reported.
The US President Barack Obama laid out a new package that aims to cut the federal deficit by around USD 4 trillion, pushing up the US dollar and weighing down the euro.
Crude oil and gold prices both slumped, and LME base metal prices closed with losses across the board, down over 2%, Obama’s deficit cut plan was in line with market expectation, but the plan was opposed by both parties in Congress.
For today's session market is looking to take support at 1002.8, a break below could see a test of 992.1 and where as resistance is now likely to be seen at 1022, a move above could see prices testing 1030.5.
Trading Ideas:
Nickel trading range is 992.1-1030.5.
LME nickel prices fell rapidly below USD 21,200/mt due to concern over economy in the US and EU.
Nickel will be under pressure as delay of new round aid package for Greece disappointed market.
NAHB announced that the US house builders confidence was down in Sept, and the US HMI was still at level.
Courtesy: Kedia Commodities
Get Trading Tips that suits your profile and budget
