Comments
The June month futures contract of nickel on the Multi Commodity Exchange of India (MCX) increased one per cent to ₹1,333 per kg on Wednesday.
The contract is now testing short-term resistance at ₹1,335 levels. A conclusive breach of this hurdle will reinforce the bullish momentum and underpin the uptrend that started from the significant base at ₹1,145 levels in late March this year. Following a minor corrective decline in mid-May, the contract found support at ₹1,217 and now trades well above the 21- and 50-day moving averages. The daily relative strength index is on the brink of entering the bullish zone from the neutral region.
An emphatic break above the current resistance level of ₹1,335 will strengthen the up-move and take the contract northwards to ₹1,400 and then to ₹1,450 over the medium term. That said, failure to move beyond the aforementioned resistance can pull the contract down to the immediate support level of ₹1,300. A further decline below this support can drag the contract lower to ₹1,275 and then to ₹1,225 levels.
Traders should tread with caution and consider taking fresh long positions on a strong rally above ₹1,335 levels with a fixed stop-loss.
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.