Nickel Outlook-Some consolidation between 825-925 for next few weeks

03 Feb 2018

In continuation to our last mail on Nickel long term outlook, Nickel prices had a good run up last week and infact all the commodities with global dollar weakness.MCX prices shot up from 808 as we wrote last week to make a high of 896 just shy of psychological 900 mark. With the expectation of some dollar recovery in next week we would expect the Nickel prices on some corrective footing and some sideways trading between support zone of 825-835 and resistance zone of 890-920 levels. While the overall outlooks looks upward in the near term till the 820 mark is holding which if it breaks will push the prices lower again towards 750 levels. So we would expect these levels to hold and bring a up move again towards fresh high of 920 in couple of week. Similarly on the LME prices, the up move was halted at the resistance trendline of the rising wedge formation as seen on the chart. As seen on the chart yellow line marks a good support zone which now stands at 12900-13200 levels from where we expect a bounce back to 14200 levels. Only a break below 12900 will confirm the top is formed in the short run and will open the cards for 11200.