LME 3−Month forward Nickel

Wed, Mar 3 2010, 11:42 GMT
by Nicole Elliott

http://www.fxstreet.com/technical/market-view/technical-analysis-commodities/2010-03-03.html

Mizuho Corporate Bank |

Comment: Early in 2009 Nickel based ahead of $7,000, the mean price of the last thirty years, suggesting it would hold above here for at least a year and probably a great deal longer. After consolidating neatly between $16,000 and $21,000 for the best part of eight months, Nickel is on the move again. March’s gap higher signals the start of the next leg, and moving averages should help push prices up to the $25,000 area where consolidation is likely. However, as is so often the case with this metal, it often overshoots dramatically in which case we feel it should continue on to the $30,000/34,000 area where more meaningful consolidation is expected.

Below $19,850 postpones all of the above and under $15,850 forces us to re-think.