MCX Nickel recently performed a channelized pullback. It formed a triangular pattern within the channel, and broke out on the upside to form a third leg of the pullback. The pullback retraced 38.2% of the previous fall. It then started a fresh move down from that point, and has given a breakout from the channel on the downside.
The daily momentum indicator has provided a fresh sell signal. The base metal is poised for a significant decline. The short-term target on the downside is the recent low (787.50), whereas the subsequent target is the weekly lower Bollinger Band® (767). The reversal can be trailed to 845.