Shubhlaxmi Commodity
Investing Wisely

05 Aug 2015 Technical Chart Nickel Downward trajectory

The adjacent chart shows the price movement of MCX nickel continuous contract. The base metal has been trading in a multi-month falling channel. Recently, it found support near the lower end of a medium-term falling channel and has formed a pullback. However, it faced resistance near the key daily moving averages (DMAs). Thus, the base metal has started falling once again. The daily momentum indicator has triggered a bearish crossover. Unless 20-DMA, ie Rs.720 is crossed on closing basis, nickel can fall back till the recent low, ie Rs.666, and the channel line, which is near Rs660.