Nickel weekly tips 14 to 18 April 2014
Nickel daily chart technical analysis
Mcx nickel future on last trading session closed at 1055 with 2% gain. On daily chart, nickel future price trend and momentum both are strong bullish. Nickel is trading at fresh highs from short-term view with overbought indicators. For next week, nickel future support zones are 1030 and 980. 1030 is week average and 980 is 1-month average while on upside 1080 and 1120 are resistances. Daily chart indicators are bullish but heavily overbought.
Traders here follow sell on rise view with strict stop loss and expect correction up to 980.
Nickel weekly chart technical analysis
Mcx nickel future this week closed with gains of 7.5%. This week nickel hit high at 1057 while lo was at 982. Total 70 rupee or 8% weekly swing and closed with huge gains as trapped shorts exits at highs. In last 2 weeks nickel future rallied from 940 to 1060. Total 120 rupee or 13% gains in very short terms.
From medium to long-term view, nickel future support zones are now 950 and 920. 920 is 2 years average level and 950 was previous breakout point on weekly chart. On upside 1080 and 1120 are resistances. Weekly chart indicators are bullish but overbought so expect limited upside and much large downside for correction.
Investors must book profits or trail it with strict stop loss and we may see sharp corrective moves in upcoming weeks.