MCX Nickel expected to trade between 905.1-924.3 levels

Technically MCX Nickel market is getting support at 909.5 and below same could see a test of 905.1 level, And resistance is now likely to be seen at 919.1, a move above could see prices testing 924.3.

Nickel on MCX settled down 0.01% at 913.90 on long liquidation tracking weakness from LME nickel ended with a 0.1 per cent decline at $US12,960 as a weak US dollar and dwindling stocks lent support, with investors also still cheering signs of progress in US-China trade talks.

The base metals are seeming split into two camps with copper and Zinc being driven higher by developments directly affecting them, while the rest seem to be following the broader markets more, although are no doubt keeping an eye on copper and the US-China trade talks.

If a trade deal looks likely then industry may well feel more confident and in turn that is likely to encourage some restocking along the supply chain, which seems to have destocked over the past nine months on the back of the trade dispute.

Meanwhile the US dollar slid to a three-week low on Tuesday, as Federal Reserve Chairman Jerome Powell repeated in prepared testimony released in advance of a hearing before the US Senate Banking Committee that the US central bank would remain “patient” in deciding on further interest rate hikes.

The greenback also benefited from a jump in the US consumer confidence index for February. Now day ahead economic data slated for release today include the Eurozone’s economic climate index and consumer confidence index for February, the US’ wholesale inventories, factory orders and durable goods orders for December, pending home sales for January. Fed Chairman Jerome Powell will continue his two-day semiannual testimony before Congress today.

Trading Ideas:

–Nickel trading range for the day is 905.1-924.3.
–Nickel settled flat on expectations of a trade agreement between Washington and Beijing.
–The global nickel market was mostly balanced in December compared to a deficit of 5,800 tonnes in November.
–U.S. President Donald Trump confirmed he would delay a planned tariff increase on Chinese imports as talks between the two sides were making “substantial progress”

Courtesy: Kedia Commodities