Nickel Intraday Trading Level 618-580

Nickel Intraday Trading Level 618-580

Gold Silver Reports — Nickel prices ended flat as LME nickel ended unchanged at $9,100 a tonne after moving as high during the day to $9,360 a tonne as market sentiment turned more upbeat despite persistent oversupply.

Commodities prices have been lifted by a wave of speculative investment, backed by a credit-driven pickup in Chinese demand, with base metals caught up in a surge in iron ore prices.

In news, creditors of an Australian nickel company owned by embattled politician Clive Palmer voted on Friday to wind up the company and chase millions of dollars owned to creditors and workers. Nickel inventories have been drawing. China looks the strongest in months and global stainless steel production has stabilized.

Many larger-miners said they are considering potential shutdowns at loss-making operations. As a result, we see nickel prices rallying in second half 2016. Factory conditions in the U.S. remain soft as the PMI Manufacturing Index flash reading for April fell 0.6 to 50.8, sharply below expectations of 52.0.

Any reading above 50.0 provides indications of monthly growth. Nevertheless, April’s flash reading represents its lowest level since the start of the recovery of global financial markets. Metal traders continued to digest relatively dovish comments from European Central Bank president Mario-Draghi on Thursday regarding the likelihood of future easing measures from the central bank.

It came after the ECB’s Governing Council left its benchmark interest rate for the euro zone at a record-low of zero and its deposit rate unchanged at Minus-0.4%. Technically market is under fresh selling as market has witnessed gain in open interest by 7.55% to settled at 14343,

Now Nickel is getting support at 591 and below same could see a test of 582 level, and resistance is now likely to be seen at 618, a move above could see prices testing 638. — Neal Bhai Reports

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Neal Bhai has been involved in the Bullion and Metals markets since 1998 – he has experience in many areas of the market from researching to trading and has worked in Delhi, India. Mobile No. - 9899900589 and 9582247600

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