MCX Nickel Bulls make a comeback

The adjacent chart shows the price movement of MCX Nickel continuous contract. It has seen a sharp correction from 745 levels. However, it found support around 630 levels and has bounced back sharply. It has possibly completed a medium-term correction and is likely to advance in the coming weeks as long as it doesn’t close below 625. Since it has crossed the 20DMA, a move towards the upper end of the Bollinger Band is likely, which is currently pegged at 685 levels. On the way down, 665-655 will act as support. Any dips towards the support zone should be seen as a buying opportunity. The momentum indicator is in a positive mode.