Nickel: Bounce on the cards

From 50% retracement of the entire fall, MCX Nickel was falling down. The fall was unfolding in a channelised manner. However Nickel has broken out from the falling channel. It has crossed the 20 day moving average (DMA) and the 40 day exponential moving average (DEMA). The daily momentum indicator is also indicating that a bounce is on the cards. Thus unless the swing low of Rs923.9 is broken the base metal is expected to move upwards. The equality target on the upside is Rs996, whereas the falling trendline from the previous highs is Rs1,040.