Commodity Calls

Key resistance ahead for MCX-Nickel

Gurumurthy K BL Research Bureau | Updated on February 06, 2019 Published on February 06, 2019

The Nickel futures contract on the Multi Commodity Exchange (MCX) has risen in the past week as expected, breaking above the key resistance level of ₹873 per kg. The contract surged about 9 per cent intra-week and hit a high of ₹951.3 on Tuesday. Though the contract fell from the high, it has reversed higher again from around ₹921 and is currently trading at ₹949 per kg.

A key resistance is near ₹956. Inability to breach this hurdle can drag the contract lower to ₹920 again. A break below ₹920 will then increase the likelihood of the contract extending its downmove towards ₹900 thereafter. A rangebound move between ₹900 and ₹956 can be seen for some time in such a scenario.

On the other hand, if the MCX-Nickel futures contract manages to breach above ₹956 decisively, the current uptrend can extend towards ₹1,000 in the coming weeks.


Since the contract has risen sharply in a short span of time, the possibility remains high of the resistance at ₹956 capping the upside in the coming days. As such, the MCX-Nickel futures can trade subdued and remain rangebound for some time before the current uptrend resumes.

Global trend

The uptrend in the Nickel (3-month forward) contract on the London Metal Exchange (LME) made a high of $13,275 per tonne in the past week and has come-off slightly from there. It is currently trading at $13,275 per tonne.

The key resistance level of $13,285 is holding well as of now. As long as the contract trades below this hurdle, a test of the next support at $12,850 is possible in the near term. A break below $12,850 will then increase the likelihood of the contract extending its corrective fall towards $12,500.

A strong break and a decisive close above $13,285 is needed for the uptrend to gain fresh momentum. Th next target if $13,800.

Note: The recommendations are based on technical analysis and there is a risk of loss in trading

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