MCX NICKEL TECHNICAL LONG-TERM OUTLOOK

Date: 18 December 2010

MCX NICKEL TECHNICAL LONG-TERM OUTLOOK

TECHNICAL OVERVIEW:

MCX Nickel prices have spiked up sharply in the last week closing up 4.35% from its previous week’s closing of 1085.10. Looking at the weekly chart the counter has given Bullish Symmetrical Triangular breakout by breaching a resistance of 1120.00.

We expect BULL trend to follow in Nickel in the long term Target Rs.1465.00

NICKEL WEEKLY CHART:

Observations:

• After a long consolidation between 1120.00 and 958.00 for last 10 weeks, the counter has finally breached the 1120.00 resistance and closed above 1130.00. Prices are in positive momentum as long as holds above 1024.00

• The RSI is trading above 60 and has potential to move up further with supporting average and trend line. The breakout should occur with an expansion in volume, especially on upside breakouts.

• MACD holding above the zero line for a long time, indicating a good up moves ahead.

• Last but not the least; Directional Index too has given positive cross over in +DI and -DI, rising ADX suggesting a start of a new Up trend ahead.



TRUE INFOTEC: MCX NICKEL LONG TERM VIEW:

POSITIONAL CALL (3 TO 4 MONTHS): BUY NICKEL MCX 1105-1130 ZONE FOR
THE TARGET 1ST 1300.00 & TARGET 2ND 1465.00 WITH SL OF 1020.00, CMP 1130.00

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Report By: Pradeep Karnani
Research Analyst

Mobile: 09966028055
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FOR PRIVATE CIRCULATION ONLY
DISCLAIMER: Stock & Commodity trading is a high-risk movement. The above recommendations are based on Technical Analysis. Any major fundamental news or market sentiment can make these levels irrelevant or unsuccessful. The targets and time frame for the same mentioned above are indicative and may vary depending upon the market situation. Receivers are urged to exercise their own judgment in trading. Any action you choose to take in the markets is totally your own responsibility. We (TRUE INFOTEC) will not be liable for any, direct or indirect, consequential or incidental damages or loss arising out of the use of this information. This information is neither an offer to sell nor solicitation to buy any of the commodities mentioned herein the writers may or may not be trading in the securities mentioned.

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