nickel intraday

18 June 2008 09:49:48

MCX Nickel trades volatile on Tuesday, market registered days low near 1015 and high near 1046.50, closed at 1036 with minor gains.

LME nickel is retracing its recent gains as the market soaks up the news that production disruptions may not be as serious after all.

While BHP Billiton's (BLT.LN) closure of its Kalgoorlie smelter and associated refinery in Western Australia may have succeeded in shifting nickel's trading range. The fact that the company will have concentrates for export has dulled the impact of its initial announcement.

Nickel still needs to work off its inventory build, and this can be done only by a revival in demand, Nickel inventories at LME, increased by 42 MT to 46998 MT.

MCX Nickel June - Technical Outlook:

The daily stochastics have crossed over down 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 are neutral to bearish signalling sideways to lower prices in the near term. Initial support for the market is around 1019 levels. If broken can see further fall to 1001 and 987, If market holds above 1033 further rally can be seen towards 1050 and 1064

Recommendations: MCX Nickel June: Sell at 1045 Target 1020 and 1005 SL 1052

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