Comments
The December futures contract of nickel on the Multi Commodity Exchange (MCX), which has been in an uptrend since early October, was consolidating in sideways trend within ₹1,184 and ₹1,210 for the past two weeks. But the contract broke out of the range on Tuesday, shifting the bias to upside.
The current price level is well above the 21-day moving average indicating considerable upward momentum. Notably, the latest breakout has confirmed an ascending triangle – a bullish chart pattern. Moreover, the relative strength index and the moving average convergence divergence indicators on the daily chart stay in their respective bullish territory. However, as a caution, both the indicators are showing weakness in the rally.
So, traders can initiate fresh long positions with stop-loss at ₹1,184 if the contract rallies past ₹1,220. A breakout of ₹1,220 can take the contract to ₹1,250 and interestingly, the ascending triangle pattern indicates a possibly target of ₹1,280. Immediate supports can be spotted at ₹1,184 and ₹1,140.
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.