Nickel technical analysis 19 to 23 May 2014
Nickel daily chart technical analysis
Mcx nickel future on last trading session closed at 1117 with gain. On daily chart nickel, future price trend is up but momentum is weak as correction hit the market. However, nickel future is still trading above its 3-month average. On upside 1130 and 1150 are strong resistances of 1 month and 1 week average levels. On downside 1045 and 1000 rupees are strong support zones. Daily chart indicators are showing signs of correction ahead.
Traders below 1150 keep short view on nickel future and expect downside up to 1045 to 1000 rupee in next week. Any daily closing above 1150 will be reversal signal and buying opportunity. In that scenario, momentum may take prices up to 1200-1250 levels.
Nickel weekly chart technical analysis
Mcx nickel future this week tumbled by 8%. A bearish engulfing pattern is formed on weekly chart, which is sign of reversal of trend. Nickel future has formed top at 1210 and will remain as major supply zone for long term. On downside 990 is 6-month average and 950 is 12 and 24-month averages and major support zones. Indicators are bearish and given sell signal in overbought zones suggesting big downside correction rally in upcoming weeks.
Here risky investors can go short on nickel with stop loss above 1210 and expect 950 as target level in medium terms.