MCX Nickel under long liquidation; Resistance seen at 945.9

Technically Nickel market is under long liquidation as market has witnessed drop in open interest by 13.42% to settled at 5090 while prices down 11.6 rupees.

Now MCX Nickel is getting support at 909.8 and below same could see a test of 897 level, And resistance is now likely to be seen at 945.9, a move above could see prices testing 969.2.

Nickel on MCX settled down 1.24% at 922.60 dropped on long liquidation but before this nickel and other metals gained sharply benefiting from an unwinding in short positions. Nickel hit its highest in more than four months on concerns that a force majeure by Brazil’s Vale on some iron ore contracts could lead to restrictions in its nickel supply.

Benchmark nickel on the London Metal Exchange (LME) ended 0.9 per cent lower at $US12,925 per tonne, after it touched $US13,350, its highest since August 31, as the dollar firmed. Also a Brazilian court forced production to stop at Vale’s iron ore mine after a tailings dam burst last month, killing more than 300 people and compelling Vale to tell clients it could not deliver on some iron ore contracts.

Now market players looked ahead to comments from Federal Reserve Chair Jerome Powell for further hints about the outlook for monetary policy in the months ahead. Powell is scheduled to deliver opening remarks and answer questions on monetary policy at a town hall meeting with teachers in Washington, D.C.

The U.S. central bank last week signaled that its three-year drive to tighten monetary policy is close to an end due to rising headwinds to the economy. commodities priced in the currency, making them more expensive to users of other currencies.

Trading Ideas:
–Nickel trading range for the day is 897-969.2.
–Nickel dropped on profit booking after prices gained supported by easing U.S.-China trade tensions.
–Prices also remained supported amid speculation that output cuts at Vale’s Brazilian operations would spread to its nickel operations.
–U.S. President Trump said that he was optimistic about the prospects of a deal after the good vibe of negotiations.

Courtesy: Kedia Commodities