Home Commodity Market News MCX Nickel likely to move in a range of 847.8-896.8

MCX Nickel likely to move in a range of 847.8-896.8

Technically Nickel market is getting support at 859.8 and below same could see a test of 847.8 level, And resistance is now likely to be seen at 884.3, a move above could see prices testing 896.8.

Nickel on MCX settled down 1.62% at 871.80 dropped on fresh selling and pressure also seen after Rupee strengthened against the US dollar after key macroeconomic data while nickel futures on LME also moving downward amid an increasingly negative appetite for risk across the commodity markets.

LME nickel tumbled to a low of $12,210/mt from a high of $12,575/mt on Tuesday. It then recovered some losses to finish the trading day lower at $12,390/mt. Last week’s rally to a five-month high of $13,350 per tonne on the London Metal Exchange has gone into sharp reverse. Nickel was trading back at $12,385 on Tuesday.

The trigger for the price surge was concern that Brazilian producer Vale’s nickel operations would suffer some sort of knock-on effect from the devastating tailings collapse at the company’s Brumadinho iron ore mine. Last night LME base metals, except lead, traded lower on Tuesday.

Zinc and aluminium dropped 1.2%, nickel slipped 0.6% and copper fell 0.4%. The US dollar fell on Tuesday after eight days of gains, the longest in two years, as investors turned to riskier assets on optimism over the outcome of US-China trade talks.

The number of positions waiting to be filled rose by 169,000 to 7.34 million, from an upwardly revised 7.17 million in the prior month, according to the Labor Department’s JOLTS released on Tuesday.

The quit rate remained at 2.3%, indicating confidence that job prospects remain strong. Now a day ahead Economic data slated for release today include China’s January trade balance, the US January consumer price index (CPI).

Trading Ideas:
–Nickel trading range for the day is 847.8-896.8.
–Nickel dropped as the dollar seen supported as U.S.-China trade talks, show little sign of progress, raising the risk the US could ramp up tariffs on China.
–Economic growth concerns in the eurozone continue to weigh on sentiment after the European Union cut its growth outlook on Italy and Germany last week.
–Investors looking to a new round of Sino-U.S. trade talks as the economies try to resolve a tariff dispute that has put a dent on global growth and corporate

Courtesy: Kedia Commodities

Source: Commodityonline.com