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Technically Nickel market is under short covering and getting support at 889.9 and below same could see a test of 881.8 level, And resistance is now likely to be seen at 905.3, a move above could see prices testing 912.6.
Nickel on MCX settled up 1.03% at 898.10 gained on short covering while the base metals complex shrugged off the escalating US-China trade dispute. Now investors reduced concerns over the China-US trade war.
Fresh US tariffs imposed on Chinese goods are expected to cause limited impact on the downstream stainless steel sector as China barely exports such products to the US. China responded to the latest U.S. tariffs on $200 billion of Chinese goods with tariffs on about $60 billion worth of US goods, as previously planned, but has reduced the levy it will collect on the products.
As per state media the China is not afraid of “extreme measures” the United States is taking in the trade war and will use it as an opportunity to replace imports, promote localisation and accelerate the development of high-tech products.
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The dollar meanwhile hit its weakest since late July against a basket of major peers, supporting dollar-priced metals by making them cheaper for buyers with other currencies. China’s yuan was steady against the greenback.
Last night the US dollar index rebounded as it recovered from earlier weakness that came after China responded with new tariffs on $60 billion worth of US goods. Meanwhile, US Treasury yields were also on the rise, to their highest since May for the 10-year bond.
Base metals increased for the most part. LME copper led the gains and surged 2.36%, zinc rose 1.8%, nickel jumped 0.69%, SHFE copper grew 1.91%, zinc went up 0.44%, and nickel closed 0.16% higher. The US NAHB homebuilder sentiment indicates signs of stabilizing in September.
Trading Ideas:
–Nickel trading range for the day is 881.8-912.6.
–Nickel prices rose supported by purchasing enthusiasm downstream improved, with smaller domestic and overseas supplies.
–The price spread of high-grade NPI and nickel in the Chinese market turned into discounts as supplies grew significantly in September.
–Nickel ore inventories at ports grow to 12.43 million wmt.
Courtesy: Kedia Commodities
Source: Commodityonline.com
