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Thursday, May 26, 2022

MCX Nickel likely to move in a range of 905.9-965.5

MCX Zinc expected to trade between 192-205.8 levels

MCX Copper likely to trade between 442.6-449.2 levels

MCX Natural Gas expected to trade between 187.9-196.7 levels

MCX Crude Oil may trade in a range between 3750-4018

MCX Aluminium under short covering; Support seen at 137

Technically MCX Nickel is getting support at 920.1 and below same could see a test of 905.9 level, And resistance is now likely to be seen at 949.9, a move above could see prices testing 965.5.

Nickel on MCX settled down 1.52% at 934.20 fell as traders took profits after betting the metal up to four-month highs in the previous session on concerns that Brazilian miner Vale could be forced to curtail supply.

Prices also slid amid pressure from concerns over slowing factory activity in the world’s biggest industrial metals consumer China. Trading was dampened by the week-long Lunar New Year holiday which has closed markets in China.

Stocks hovered near four-month highs on Monday after a mixed performance on Wall Street at the close of last week, while the dollar firmed against the yen following strong U.S. employment and manufacturing data.

Nickel surged 5 percent on Monday after a Brazilian state court ordered Vale to stop using eight tailings dams following a disaster last month that probably killed more than 300 people. The order will hit nine percent of Vale’s iron ore production, but traders say the company’s nickel output should emerge unscathed.

Nickel prices on Monday broke through the 200-day moving average, sparking technical follow-up buying. As support seen after LME data shows one firm holding a large short or sell position, while another holds between 50-80 percent of cash contracts and warrants, indicating the firm that is short might get squeezed.

Also Nickel stocks are continuing to decline in the LME’s warehouses yet this is nothing new. Nickel production is likely to be expanded considerably this year. The Fed said in a statement afterwards that Powell reiterated that “the path of policy will depend entirely on incoming economic information.”

Trading Ideas:
–Nickel trading range for the day is 905.9-965.5.
–Nickel dropped on profit booking after prices gained supported by easing U.S.-China trade tensions.
–Vale Indonesia produced 74,806 tonnes of nickel contained in matte in 2018, down 3 percent from the 76,807 tonnes it produced in 2017.
–At 202,032 tonnes inventories of nickel in LME-registered warehouses are down from around 370,000 tonnes at the start of 2018 and near the lowest since 2013.

Courtesy: Kedia Commodities

Source: Commodityonline.com

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