Mcx nickel future this week closed at 687.1 rupee with loss. This was third weekly loss for nickel prices and in these 3 weeks we saw move from 786 to low of 674 total 112 rupee sell off in less than month on strong profit booking. This week nickel future hit high at 735 and low was at 674. Total 61 rupee weekly move from high and strong negative closing on sharp profit booking as well as fresh shorting.
Mcx nickel weekly chart price trend is still bullish but momentum is fizzling out as profit booking waves are hitting nickel market. On weekly chart, nickel future retracing back towards 20 and 50 weeks average levels to test them before next long term move. Nickel future is now trading below 5 weeks average of 708 rupee. On downside 671 and 664 are 20 and 50 weeks average levels. Mcx nickel weekly chart RSI is at 53 with sell signal and bearish divergence. MACD is at 20 with bullish crossover and divergences and given buy signal around 577 rupee on weekly chart.
For month of September, mcx nickel future opened strong and given 22 rupee rally on first day of month and closed strong. On upside 788 was my first swing target for this month and we saw high of 786 rupee and then sell of tested support of 718 rupee, then breakdown below it hit 679 rupee target and now building bottom for recovery rally. On downside 679 remain crucial level for make or break move. Reversal from here means upside targets of 718 and then possibly 788 in September.
From long term view, mcx nickel future given breakdown at 675 rupee levels and since then sell off made prices to fall towards support of 535 rupees. And on chart 560 is bottom and prices were heading towards 675 rupee to test them. Then we saw breakout above 675 which was long term bullish trend breakout for nickel prices and now above 675, nickel will remain buy and accumulate for long term investors for my 2017 investment targets of 836 and then 980 rupees. And in this month we saw high of 786 rupee and now prices are around long term support of 675 rupee. Above this long term outlook remain buy and accumulate.
In last 7 months, mcx nickel future given 4 negative closing while 3 are positive ones. September candle is now red with high of 786 and low of 674 so total 112 rupee candle and strong negative closing.