Nickel is trading in the narrow range.
The announcement of important commodity export restrictions could affect nickel pricing.
According to the Organization for Economic Co-operation and Development (OECD), global restrictions on exports of critical raw materials have increased more than five-fold over the past decade. These restrictions could impede efforts to reduce carbon emissions.
About 10% of raw materials, such as lithium, cobalt, copper, nickel and rare earth elements have faced export restrictions. These metals are needed for electric vehicles and producing renewable energy. The overall global economic impact of these measures could be significant.
China, India, Argentina, Russia, Vietnam and Kazakhstan were the top six countries in terms of the number of new export restrictions during 2009–2020. Since export restrictions are prohibited under the World Trade Organization rules, the measures often take the form of export taxes.
Nickel alloy falls under export restriction measures. If nickel export restrictions are prolonged or expanded, it could lead to global nickel supply cuts and an increase in demand for remaining stocks. This could cause an increase in the nickel prices. Moreover, if export restrictions impact the production of electric cars and the technologies that use nickel, it could also affect the demand for the metal and its price.
The nickel price broke out of its downtrend on the H4 timeframe and now is correcting in the range of 22270–24390. It rebounded from the lower boundary and now is in the middle of the channel.
On the H1 timeframe, the price is in the process of forming the third ascending wave. The effect of the momentum will become noticeable only after breaking through the level of 24390, which is the top of the first wave.
The data on the H4 timeframe show the rebound from the support level of 22270. The price is moving towards resistance. That gives a signal to open positions at the current price.
Signal:
Nickel's short-term outlook is to buy.
The target is at the level of 25680.
Part of the profit should be fixed near the level of 24390.
A Stop-loss should be placed at the level of 22170.
The bullish trend is of a short-term nature, so it is suggested to limit the trading volume to no more than 2% of your capital.
This content is for informational purposes only and is not intended to be investing advice.
