MCX Nickel has recently performed a channelized pullback. Within the channel it formed a triangular pattern, and broke out on the upside to form the pullback's third leg. The pullback has retraced 38.2% of the previous fall. In the last session, the base metal faced selling pressure as it approached the upper channel line.
As a result, it formed a huge bearish outside bar. The daily momentum indicator has given a fresh sell signal. Thus the base metal is poised for a significant decline. The short-term target on the downside is the recent low (787.50), with a potential to fall below that. The reversal can be trailed to 878.
As a result, it formed a huge bearish outside bar. The daily momentum indicator has given a fresh sell signal. Thus the base metal is poised for a significant decline. The short-term target on the downside is the recent low (787.50), with a potential to fall below that. The reversal can be trailed to 878.