Commodities

MCX-Nickel sees fresh breakout

Akhil Nallamuthu BL Research Bureau | Updated on October 21, 2020 Published on October 21, 2020

The October futures contract of nickel on Multi Commodity Exchange (MCX), which has been on a corrective decline in September, reversed the direction in early October as the price band of ₹1,040 and ₹1,050 provided cushion.

The contract has been gaining since it crossed over the 21- and 50-day moving averages (DMA) - indicating a positive outlook. Additionally, it has broken out of the prior high of ₹1,165.3 on Tuesday, strenghtening the case for the bulls.

Further appreciation in price can take the contract to ₹1,215 in the near-term and if the bullish momentum sustains, it can even rise to ₹1,250. Notable support levels below ₹1,165 can be spotted at ₹1,136 and ₹1,100 – the 50-DMA.

Affirming the bullish bias, the daily relative strength index is rising in tandem with the price, showing good upward momentum. Also, the moving average convergence divergence indicator on the daily chart has been steadily moving upwards.

Considering the above factors, traders can be bullish and buy MCX-Nickel in declines with stop-loss at ₹1,136.

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Published on October 21, 2020
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