The above is daily chart of the MCX Nickel. Nickel has been the top performer for the 2014 year with return of more than 23% till date. During the start of this year Nickel price was trading at 870 level. In month of March 2014, price succeeds to cross the important resistance and psychological resistance level of 1 ton that is 1000. In the mid of May month price made high of 1280. There after it corrected back till 1050 level in early June month. Since that period price is in the range bound and it is forming the symmetrical triangle. This was about the past numeric values.
Drawing attention to the Technical chart, price is trading in the strong uptrend and trading in 1-3 and 2-4 trendline. Plotting Elliott wave counts on the chart suggest, currently price is forming symmetrical triangle and completing internal last leg of the wave count IV. Other supporting indicators like RSi is also forming symmetrical triangle with finding support near 40 level which is lower zone of bull range RSI(40-80). Decreasing volume in corrective trend suggest price may resume the previous trend.
We call Nickel as Nonstop Knight Rider because bullish trend is still pending. Bigger the congestion move, higher the probability of the steep breakout. Any closing above 1200 level will lead prices upto 1450 and 1500 level having minor support at 1100 and major support at 1050 level.
In short term to medium term (8-10 week) Nickel may ride the uptrend till 1450-1500 level once breaches 1200 level with support of 1050 level.
(Nickel- 30 Sep 2014, CMP- 1134)
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