Nickel June contract on mcx inched 40 rupees down to settle at 1115.70. Metal failed to cross above 1160 as we mentioned in our report and has witnessed a nice decline. We have seen a head and shoulder reversal pattern in this commodity which has broken its neckline on June 6th and now failed to climb above neckline and has witnessed a nice selling pressure near the same. Today price objective for bulls would be 1155 and then at 1160 any sustained move above that level may bring some charm back in this commodity and we may see a rally towards 1200 and more upside. Support is now seen near 1100 which is also a psychological level and 50 days SMA is also standing near the same hinting a strong support at 1100. Another failure below 1100 and closing below that level would signal resumption to down trend and then we will see 1050-1020-1000 in coming days. Stability above 1100 would remain bullish whereas closing above 1160 would attract fresh buying forces.
Nickel trading range for the day is expected among the key support at 1080 and resistance at 1160.
Â· Today selling nickel on jumps around 1130-1140 with top loss above 1160 for targeting 1070-1040-1010 might be appropriate for short term.
Â· Selling below 1113 with stop loss above 1130 for targeting 1100-1070-1050 and more down side might be appropriate in short term.
Â· Buying above 1160 with stop loss below 1140 for targeting 1200 might be appropriate for intraday and short term.
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