Nickel weekly tips 12 to 16 May 2014
Nickel daily chart technical analysis
Nickel future on last trading session closed with huge gains. Nickel is now trending higher in overbought zone as underling fundamentals are changing due to Ukrainian crisis. Daily chart price trend and momentum both are strong bullish and nickel with every trading session making new highs on sharp demand pressure. On chart, 1100 is 1-month average and 1030 is 3-month average and serve as strong support zone. On upside 1240-1280 will be psychological pressure points. Indicators patterns are bullish but in overbought zones.
Traders here must stay away and we may see higher volatility ahead. Those have long positions must trail stop loss below week averages of 1060 for targets 1240 and then 1280. Upcoming correction will be sharp and deep and will show same price action.
Nickel weekly chart technical analysis
Nickel future this week closed with almost 10% gains. After last weeks, breather prices once gain resumed primary trend and on Ukraine tension boomed to new high. On downside 970 is 6-month average, 930 is 12, and 24 month averages. On upside 1300-1440 are medium term supply points. This week nickel future hit high at 1234 while low as at 1093. Total 140-rupee range or 13% weekly swing and closed with sharp gains on huge short covering from trapped traders. Weekly chart indicators patterns are bullish and overbought.
Investors here keep booking profits with every upside.