Bottom fisher can grab the opportunity to buy and accumulate Nickel in panic, retracement already starts
Recommendation
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Lot Size: 250
Value: 1,60,000*
Risk: 30,000*
Target: 55,000*
Margin: 10000-15000*
Expected Gain: 35%*
( * Approx)
Nickel
On Commodity side, we have seen positive momentum in base metals in last few weeks on the verge of turnaround in the bias of global market. Rally in equity market, positive sign and growth from data prospects in china (as china consumes almost 40% of the global production) supported base metals especially, Copper, Zinc, Lead and Aluminium. Nickel too supported and gained almost 22% from its recent low of 520.20 and settled at 631.70. We have seen a good consolidation phase in Nickel from last 4-5 months at lower levels after continuous fall from 1204 mark. It made a low of 520.20 and bounced back.
Nickel is still trading at lower levels and it’s a best opportunity for traders to buy and accumulate Nickel in panic as retracements already starts. Nickel is forming double bottom pattern on weekly chart having resistance at 640 while we consider 550---520 as major support or we call it as a rock bottom for Nickel. Three consecutive closes + weekly close above 640 will see sharp upside move in Nickel for the next 38% and 50% retracement target level of 781 and 862 and even more 63% till 951+ mark in coming months. A minor hurdle at 656 is seen but chances are bright to cross the hurdle level of 656 too. MACD and RSI on weekly chart too indicate positivity in Nickel. Traders can buy Nickel above 640 and accumulate in panic as a positional call with stop loss below 520 on closing basis for the initial target of 781---862.
Recommendation
Buy Nickel above 640 and accumulate buying in panic. Stop loss 520. Target 781---862
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