MCX Nickel weekly report 5-9 May 2014
Nickel daily chart technical analysis
Mcx nickel future on last trading session closed at 1101 with loss. On daily chart, nickel future price trend and momentum both are strong bullish on Ukraine crisis. Nickel is still trading near highs with bearish overbought indicators patterns. On downside, 1060 is 1-month average level, 1000 rupee is 3-month average level, and strong support zones for next week. On upside 1040 and 1060 are strong resistances as well as targets for nickel if trend persists. Nevertheless, as indicators are bearish and in overbought zones expect correction ahead. High volatility is expected on fundamentals and technical tussle.
High risk Traders below 1040 stays short for downside target 1060 and then 1000 rupee in next week.
Nickel weekly chart technical analysis
Mcx nickel future this week tumbled by 1.55%. This was first negative week for nickel on profit booking after last 4 weeks sharp gains. This week nickel future hit high at 1133 while low was at 1081. total 50 rupee range or 4% weekly swing in prices and top is formed on weekly chart, major average supports are in 950 to 920 rupee range so sharp correction will have target around 950 rupee.
On upside 1040 is clear top and stop loss for short sellers.
Investors must book all profit and stay short in small quantities for targets of 1050 to 1000 rupees in medium terms.