Technical Outlook & Trading Strategy:-
The price of Nickel witnessed a sharp fall from its key resistance zones of Rs 1110—Rs 1120 levels during the previous week.
But, an examination of the chart above shows that the price pattern of Nickel since 29th Aug, 2011 on its weekly charts is taking shape of a bearish head and shoulder pattern with a declining neckline support placed at the Rs 970 levels.
A sustained break below this neckline support can bring about sharp corrections in the price of Nickel.
The implied targets of the said pattern suggest that the price can correct to levels of levels of Rs 880 / Rs 750 levels in the short term to medium term time frame.
We recommend traders to sell 50% between Rs 986.50--Rs 996 levels and again of rallies to Rs 1023--Rs 1030 levels with
a stop loss placed above Rs 1049.65 levels for downside targets of Rs 940 / Rs 880 and followed by Rs 750 levels.
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