MCX Tip, Near-term view is positive for MCX Nickel
Best offer And updates Share market News click Here stock market advisory tips
The nickel futures contract on the Multi Commodity Exchange (MCX) rose sharply in the past week.
The contract made a low of ₹708.5 per kg on last Thursday and has surged about 8 percent from there to the current levels of ₹764 per kg. This strong rally has taken the contract well above the key resistance level of ₹742 which was expected to cap the upside.
The decisive break above ₹742 has negated the head and shoulders reversal pattern formed on the charts.
The contract will come under pressure only if it declines below ₹742 again.
But as long as the contract sustains above ₹742, the near-term view is positive for the contract. Immediate resistance is at ₹767. A break above it can take the contract higher to ₹775 or ₹777 in the near-term. Inability to break above ₹777 can trigger a pull-back move to ₹763.
But if it manages to breach ₹777, the current up move can extend to the next crucial resistance level of ₹785. Short-term traders with a high-risk appetite can go long on dips at ₹758 and accumulate at ₹754.
Stop-loss can be placed at ₹748 for the target of ₹775. Revise the stop-loss higher to ₹763 as soon as the contract moves up to ₹770.
As mentioned above, the outlook for the contract will turn negative only if it declines below ₹742 again. Such a break can pull it to ₹734 initially.
The further break below ₹734 will increase the likelihood of the fall extending to ₹720 or even to ₹700 levels.
0 comments
Note: only a member of this blog may post a comment.