This led me to check out the one time favorite of commodity traders - NICKEL.
The price of the commodity on MCX has fallen from Rs 1400 in Mar 2008 to sub Rs 450 levels in Jan 09 - a huge fall in less than a year.
However recently the metal has been consolidating in a Rs 200 range of Rs 450 on lower side and Rs 650 on higher side. An upward break out is the most probable event. We can see a 'bottoming out' formation on the charts with multiple bottoms at Rs 450.
On break out of Rs 670 especially on close - expect a short term target of Rs 810 + and a medium term target of Rs 925+.... Keep stoploss at Rs 575 on closing level.
Happy trading!!
CA Rajiv D Khatlawala
Head of Research & Training
JHAVERI Securities Ltd.
2 comments:
Rajiv, we had multiple days of closing above 670 but Nickel seems to be stuck in a rut and not moving...maybe another patience play like EKC and Crude? what are the timeframes that we are targetting...
Rajiv, a pretty sharp decline in Nickel and all other commodities as well....patterns still valid? anything else to consider?
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