Nickel Has Put In A long Term Bottom; What’s Next?

Nickel

Nickel: Is This The Begining of A new Bull Market

If you look at a shorter-term chart 1-3 years, it looks like the main move is underway already. However, looking at a ten-year chart, we can see that Nickel is at an important junction. It needs to close above 1100 on a monthly basis; failure to achieve this could push it back down to the 820-855 ranges over rather quickly.  If one is looking for a solid confirmation, then a monthly close over 1200 should do it; this would set the pace for a test of the 1500 ranges with a possibility of trading to 1800.

Nickel

We looked at several large producers of nickel, and all their charts illustrated that the stocks were consolidating, which suggests that Nickel is likely to pullback before trending higher unless the metal is going to diverge and trend in the opposite direction.

Let’s take a look at some Nickel Producers

VALE SA (VALE)

VALE Vale S.A. daily Stock Chart

VALE, which is the world’s second-largest producer of Nickel, appears to be consolidating while nickel prices trend higher and the same appears to be true of NILSY (Norilsk Mines).  What could be taking place here is that the stocks are pulling back and building energy for the next phase upwards.

On the monthly chart of VALE, we can see that the stock is holding up quite well, while our indicators are letting out some steam. If one were willing to take some risk and wanted to act before our indicators moved into the oversold range capital could be deployed in the 9 to 10 dollar ranges

Glencore (GLCNF)

Nickel Bull Market

The pattern is quite interesting here; this is one of the few stocks in the sector that has not experienced a nice upward move. The other stocks are now consolidating building up steam for the next leg up, however, this chap is still trading in the extremely oversold ranges and technically could mount a rally at any moment. However, note that this is a speculative play.

This company also trades in London under symbol GLEN (LSX: GLEN), and it is currently the world’s 4th largest nickel producer.  Risk-takers could deploy some capital in the 3.25-3.30 ranges and another lot deployed if it drops down to the 2.90-3.00 ranges. We would hold onto the third and deploy it after one of our customer indicators generates a buy signal

 

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