The nickel price has moved to the horizontal after a couple of down months. Currently, the nickel is closer to the upper boundary of the range. However, the market is starting to calm down after Wednesday's Fed meeting. Major commodities are pulling back from their local highs. The same thing can happen to nickel. The market remains quite tense and could make a sharp downward movement at any time. Although market participants expected that the Fed would end the banking crisis.
On the background of the expected demand for the metal by electric vehicle manufacturers, there are many announcements of the development of new deposits, the creation of recycling plants and merger-acquisition deals now. All of this increases the potential supply of nickel. At this time, demand growth becomes questionable because of the coming recession in the world economy. A potential imbalance of supply and demand is formed on this basis, which may have a negative impact on the price of metal.
Cirba Solutions Company plans to invest more than $300 million in a recycling plant in South Carolina for lithium-ion batteries of electric vehicles.
Indonesian nickel company PT Trimegah Bangun Persada (TBP), which is a part of the Harita Group conglomerate, plans to increase its recycling capacity.
Mining company Wyloo Metals Pty Ltd. owned by billionaire Andrew Forrest has made an offer to buy the Australian company Mincor Resources NL. The organization is exploring for nickel and gold.
Poseidon Nickel Company said on Wednesday that it will make a decision on restarting the project related to Australia's Black Swan mining project by the end of the first half of 2023.
According to the technical analysis, nickel is trading in a rectangle and is now closer to its upper boundary. With other commodities selling off today, nickel has a good chance to correct downward.
The level of $22760 will be the target for the decrease, this price has supported the nickel quotations several times. Stop-loss can be set when the rectangle is broken through upwards, which corresponds to the price of 23850 dollars.
Decline in nickel prices:
Take profit – 22760
Stop-loss – 23850
This content is for informational purposes only and is not intended to be investing advice.
