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BL Research Bureau
The Nickel Futures contract traded on the Multi Commodity Exchange (MCX) has been in a strong uptrend since March last year. Within this uptrend, the contract has been consolidating for more than two months since October this year. The contract is currently trading at ₹1,559 per kg. On the charts, the current consolidation has been in the form of a triangle pattern. This is a continuation pattern. It also indicates that the broader uptrend is likely to remain intact and resume in the coming weeks.
A strong break above ₹1,620 will confirm the breakout of this pattern. Such a break will pave way the for a fresh rise to ₹1,720 initially and then to ₹1,770-₹1,800 eventually. Traders with a high-risk appetite can go long now and accumulate on dips at ₹1,525. Keep the stop-loss at ₹1,490. Trail the stop-loss to ₹1,555 as soon as the contract moves up to ₹1,590 and book profits at ₹1,610.
The bullish view will go wrong if the MCX Nickel futures contract breaks below the immediate support at ₹1,520. In that case, the contract can fall to ₹1,470 – the next important support. However, the broader trend will continue to remain, but the rally to ₹1,720 mentioned above will be delayed. The long-term uptrend will come under threat only if the MCX Nickel falls decisively below ₹1,400.
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