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.