17.9 C
New York
Monday, May 23, 2022

MCX Nickel likely to move in a range of 895.9-940.5

Technically MCX Nickel market is getting support at 904.9 and below same could see a test of 895.9 level, And resistance is now likely to be seen at 927.2, a move above could see prices testing 940.5.

Nickel on MCX settled down 0.41% at 914 as lack of confidence across longs failed to support the contract at that level, and the contract dipped three times to test support at 910 level. Meanwhile US President Donald Trump said he was optimistic that a final trade deal could be reached with China, though he warned that an agreement might not happen.

Markets were upbeat after Trump said on Sunday that he would delay an increase in tariffs on Chinese goods, a move seen as a step towards a deal being reached in the months-long trade dispute.

Pressure also seen after Rebar and hot-rolled coil futures eased to 3,682 and 3,678 yuan respectively, down from Friday’s night session close of 3,753 and 3,735 yuan. As curiously, the losses in commodity futures accumulated as gains in Chinese stocks accelerated, hinting that some investors may have chosen to liquidate positions in futures in order to buy into the stock market rally.

Mainland Chinese stock indexes all rallied by more than 5%, their largest one-day percentage increase in several years. Yesterday most base metals dropped despite US dollar extended its losses as risk appetite improved after US President Donald Trump decided to extend a March 1 deadline for additional tariffs on Chinese goods, suggesting trade negotiations between the two countries have made significant progress.

Now a day ahead economic data slated for release today include Germany’s Gfk consumer confidence index for March, and February consumer confidence survey from the Conference Board. Also US Fed Chairman Jerome Powell will testify before congressional committees on Tuesday and Wednesday.

Trading Ideas:
–Nickel trading range for the day is 895.9-940.5.
–Nickel dropped on profit booking after prices gained as dollar fell as investors took on riskier assets on hopes for a trade deal between the US and China.
–US President Donald Trump announced that America will delay additional tariffs on Chinese goods that were initially slated for March 1.
–In the eurozone, the consumer price index (CPI), grew 1.4% on the year in January, slowing for a third straight month.

Courtesy: Kedia Commodities

Source: Commodityonline.com

Related Articles

Stay Connected

- Advertisement -

Latest Articles

Popular Articles