The price of Nickel has been in a downtrend since it started correcting from the highs of Rs 1327 levels as on 21st Feb, 2011.
As outlined in the chart above, the prices have been facing supply pressure at the downtrend line resistance.
After the sharp fall witnessed during the past week the prices were trading in a narrow range.
It, has now registered a Reverse pennant / Bearish Flag pattern breakdown as shown in the chart above.
The Bearish/ Reverse flag pattern breakdown is a continuation pattern and suggests that Index / stock or the commodity prices will continue with its downtrend and move down further after consolidating for a few sessions of trade.
The momentum indicators continue to trade in sell mode despite the recent pullback from lower levels.
We recommend traders to sell between Rs 880--Rs 870 levels with a stop loss placed above Rs 899.40 levels for downside targets of Rs 848 / Rs 827 levels expected to be achieved over the upcoming 3-4 sessions of trade.
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