MCX Nickel registers weekly low following LME

19 June 2008 09:47:48

MCX Nickel dropped to a weekly low of 988 following LME movement and profit booking, Nickel closed near 1004 with net loss of 3.09% from previous closing. Intra day high registered near 1044.50

LME nickel comes under pressure due to a poor fundamental outlook and technical weakness, rising stocks amid declining demand from the stainless steel sector, along wtih "significant" resistance at the thirty-day moving average, now around $24,363/metric ton.

Nickel inventories at LME, increased by -180 MT to 46818 MT.

MCX Nickel June - Technical Outlook:

The daily stochastics have crossed over down which is a bearish indication. The prices closed below short term and medium term EMA, which supports bears. MACD is heading downwards in positive region, showing decrease in bullish momentum.

Technical are neutral to bearish signalling sideways to lower prices in the near term. Initial support for the market is around 980 levels. If broken can see further fall to 956 and 923, If market holds above 1012 further rally can be seen towards 1036 and 1069

Recommendations: MCX Nickel June: Sell at 1010 Target 995 and 985 SL 1022

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