The nickel futures contract on Multi Commodity Exchange of India (MCX) encountered a key resistance at around ₹1,200 in the past week and tests this barrier.
In the last session, the contract slipped marginally about 0.7 per cent and is now at around ₹1,186 levels.
Following a corrective decline in September, the contract took support at ₹1,035 in early October and bounced up. Since then, the contract has been on a short-term uptrend.
The contract breached its 21- and 50-day moving averages in early October and continued to trend upwards.
As long as the contract trades above the key short-term trend-deciding level of ₹1,135, the uptrend will remain intact. Immediate support is placed at ₹1,155. A decline below this base can drag the contract down to ₹1,135 levels that could be a near term correction.
On the other hand, a conclusive break above the vital resistance level of ₹1,200 can reinforce bullish momentum and take the contract northwards to ₹1,225 and then to ₹1,260 over the short-term.