Nickel Potential to extend

As can be seen from the adjacent chart, MCX nickel was falling since the last few weeks. However, the pace of decline had decreased, which was evident from the daily momentum indicator, it was showing positive divergence and had triggered a bullish crossover. The base metal got support from the lower end of the channel. Thus, from the low of Rs.765.70 nickel has entered a pullback mode, which is breaking up into lower degree waves. Structurally, the pullback has a potential to stretch further. Once the swing high of Rs.813.70 is crossed nickel can head till Rs.833-850. An immediate support is at Rs780.7, whereas a major support is at Rs.765.70.