Mcx nickel future in month of September, closed at 689.2 with loss. This was first losing month for mcx nickel future after last 3 months continues gains. In September, mcx nickel future hit high at 786 while recorded low of 665. Total almost 121 rupee month range and strong negative closing for mcx nickel future on profit booking.
For month of October, mcx nickel future major resistance is at 714 rupee and below it nickel will remain weak and trading strategy will remain sell on rise with stop loss for big downside targets. On downside 642 and 593 are major support zones as well as bearish targets for this series if prices remain below 714 resistance.
On daily chart, mcx nickel is in downtrend and below 714 will remain sell. On downside 642 and 593 are major support zones as well as target level if downtrend continues. Daily chart RSI is at 42 with bullish divergence and MACD is at -30 with early recovery pattern. Recent low of 665 will remain important and if nickel breaks that level then expect 642 and then 593 rupee level targets for sure. But if hold then current recovery move towards 714 will continue and might change the trend for short term.
So metals commodity traders, above 714 rupee level keep buy on dips view on nickel future for swing targets 762 and then 824 rupee. Currently prices are recovering towards 714 level. But if recovery rally fizzle out and downtrend persist then traders keep shorts open with stop loss for targets 642 and then 593 rupee.