MCX Nickel extended its rally into another day

MCX Nickel trades positive following Lme movement, registered days high near 1049.50 but settled with minor loss at 1035, days low registered near 1020.

Nickel extended its rally into another day in Asia Monday, as the market continued to price in the four-month shutdown of BHP Billiton's Kalgoorlie smelter. Overall, though, sideways trading in the dollar and oil prices left base metals struggling for direction in a very quiet session.

UBS analyst John Reade said the rally has been driven by both fresh longs and short-covering, and could have more room to run in the short term.

Nickel inventories at LME, decreased by 132 MT to 46956 MT.

MCX Nickel June - Technical Outlook:

The daily stochastics have crossed over up which is a bullish indication. The prices closed above short term and medium term EMA, which supports bears. MACD is heading upwards in positive region, showing increase in bullish momentum.
Technical have turned neutral to bullish and market is expected to remain positive above 1050 levels. If sustain above this level can see a rally towards 1064 and 1079, If market sustains below 1035 can see a further fall towards 1020 and 1005

Recommendations: MCX Nickel June: Buy at 1030 Target 1050 and 1070 SL 1010

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