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Nickel-Will bulls achieve silvery ambitions? Nickel
CMP: ` 579.30 (As on 02nd June, 2017)
Strategy: Buy > ` 590.00
Targets: ` 717.00-810.00
Stop loss: < ` 515.00 bearish trend and few pockets of sluggishness have
completely distorted the chart. The oversold zone
Nickel…the industrial metal also known as the has not triggered any important bounce backs and
distant cousin of Silver due to its color and shine is what we saw are just few disheartened attempts
ironically facing the same fate in terms of price and within a particular day or week. Through Elliott
trend as its heavyweight relative. After scoring an wave analysis, it seems we have cracked the puzzle!
all time high in April 2011, Silver prices have seen On weekly chart, a double three pattern has actually
a decline of almost 65%. Nickel too had followed in shaped-up and if the placements are right, we guess
the footsteps with nearly 60% fall during the same this is the completion point and a strong reversal
time period. Let us gauge that underlying scope of is awaiting. The oversold zone and their lackluster
a reversal in Nickel prices if any positive news flow behavior discussed above are typical characteristics
starts on a possible rise in demand in future. of a ‘double three pattern’ during its formation.
This pattern is going to be the base formation when
First things first, weak fundamentals have Nickel charts will be viewed after a quarter by the
continuously dominated the price trend in Nickel poor trend followers! Act now and do not settle for
and what we have seen is a state of oversupply less than being a ‘trend maker’!
from leading producers Indonesia and Philippines.
More importantly, at the same time, demand has We recommend buying in Nickel July contract
not seen any magical growth, not even in small above Rs.590.00 for targets in the range of
spells. This state is not likely to change overnight Rs.717.00-810.00. Maintain stop loss below
BUT it seems that the time has now come for few Rs.515.00.
small spells of that much needed spike in demand
before a complete trend reversal. Technically, the
7 ARIHANT CAPITAL ¡ JUNE 2017
