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Technically MCX Nickel is getting support at 918.9 and below same could see a test of 912.1 level, And resistance is now likely to be seen at 938, a move above could see prices testing 950.3.
Nickel on MCX settled down 0.75% at 925.80 as prices slipped on Monday as the U.S. dollar strengthened and on concerns that escalating global trade tensions could hurt demand.
Pressure seen after the speculation that China’s factory-gate inflation cooled for a third straight month in September amid ebbing domestic demand, pointing to more pressure on the world’s second biggest economy as it remains locked in an intensifying trade war with the United States.
Growth in China’s factory sector in September stalled after 15 months of expansion, with export orders falling the most in more than two years, a private business survey showed. Escalating global trade tensions have helped drive down metal prices in the second half of the year – but the outlook isn’t all bad.
Despite precipitous price falls in many base and battery metals, year-to-date price averages are still higher than last year. Nickel has been this year’s best performer, with average prices to the end of September 36 per cent higher compared with the same period in 2017.
Last night the US dollar dipped on Monday after retail sales data for September missed expectations and as benchmark US Treasury yields consolidated after they climbed to their highest level in seven years, last week.
While from data side US retail sales barely rose in September as a rebound in purchases of motor vehicles was offset by the biggest drop in spending at restaurants and bars in nearly two years. Retail sales edged up only 0.1% in the month, compared with an expected increase of 0.6%.
Trading Ideas:
–Nickel trading range for the day is 912.1-950.3.
–Nickel prices dropped as a trade war between the United States and the world’s top industrial metals consumer China weighed on the market.
–China imported 5.77 million mt of nickel ore in Aug, up 32.8% from Jul and 23.3% from the corresponding month in 2017.
–The dollar edged up reflecting investor confidence in the US economy, despite criticism by President Donald Trump of the Federal Reserve.
Courtesy: Kedia Commodities
Source: Commodityonline.com
