Quotes from Unicredit:
- Our view for a while has been that the rebound in nickel prices from the October low may not be sustainable yet. This is mainly based on our technical analysis, and with prices failing to breach important upside objectives in the mid-$17,000s and now falling away, this view seems to have been vindicated.
- However, from a fundamental perspective, nickel is starting to look healthier, particularly in the sense that indicators from China continue to show the nickel pig iron (NPI) supply chain tightening. There has also been a supply disruption in Australia.
- But, at the moment, these factors seem to be getting overshadowed by general market concerns about China’s economy and falling oil prices. While this is the case, nickel will remain vulnerable despite further improvements in nickel-specific fundamental indicators.
The material has been provided by InstaForex Company – www.instaforex.com