The news from Nickel Asia, the largest nickel producer in the Philippines, might have an impact on the industrial metal price.
The company plans to launch two more mines into production in three years. In addition, according to its CEO, the probability of building another refinery is being considered.
Nickel Asia now partly owns two nickel ore processing plants in the Philippines. The company aims to increase investment in a renewable energy business.
Nickel Asia’s target is to reach annual nickel ore production of at least 4 million wet metric tons from the Bulanjao mine and at least 2 million wet metric tons from Manicani mine. The company also intends to boost ore shipments from Dinapigue mine and considers the possibility to develop the Kepha field with initial production volumes of 2 million wet metric tons per year.
According to president of Nickel Asia Martin Antonio Zamora, the company aims to explore two potential nickel mining fields in southern Davao province, under a recently forged deal with two domestic companies.
The planned increase in nickel mining by the largest producer in the Philippines points to rising supply of the metal in the global market, which could be negative for its price. At the same time, it is worth keeping in mind investors’ interest in joining the renewable energy business.
The price is out of the uptrend on the H1 timeframe, indicating a downtrend formation.
According to the wave analysis, on the M30 timeframe the price is in the formation of the second pullback wave, where the first wave has a downward momentum. Signs of the third wave’s formation are present, given the Stochastic Oscillator data (standard values), the sliding indicator moved out of the overbought zone. Breaking through the top of the first wave at the level of 23,945 strengthens the signal to sell.
Signal:
The short-term outlook for nickel suggests selling.
The target is at the level of 23,550.
Part of the profit should be taken near the level of 23,945.
The Stop-loss is at the level of 24,680.
Bearish trend is of short-term nature, so it is worth selecting the trading volume of not more than 2% of your balance.
This content is for informational purposes only and is not intended to be investing advice.
