MTECHTIPS MCX NICKEL WEEKLY trading analysis 28-05-2015
Mcx nickel last closed at 823.5 . nickel future price trend and momentum is strong bearish and this commodity is trading near its recent lows.on daily chart, mcx nickel future trading way below its 3 and 1 month averages. 857 is 1 month average while 865 is 3 month average levels and will remain strong resistances. on downside 790 and 765 are support zones of previous major bottoms. daily chart indicators, MACD is below zero with bearish divergence, RSI is heading towards oversold zone and CCI is –131 and heading towards oversold area.on weekly chart, nickel future closed with heavy losses in this week. this was second losing week for this metals and givens reversal from major medium to long term averages suggesting long term trend continuation pattern with possibility of new low ahead. this week nickel future hit high at 889 while low was at 805. total 85 rupee or almost 10% move on downside in week. in last weeks nickel future tumbled from highs of 930 to lows of 800 rupee suggesting something serious selling by major hands. weekly chart indicators pattern suggesting bear rally signals.for next week, nickel future below 805 level might fall up to 720 rupee. so best shorting opportunity with strict stop loss in place. reversal from here means bounce back up to 850.