Nickel price moved out of the corrective corridor

17 April 2023 145
Nickel price moved out of the corrective corridor

 

Nickel price moved out of the corrective corridor.

 

The news from Volkswagen is likely to affect nickel pricing. Volkswagen is going to create an electric vehicle (EV) battery business ecosystem in Indonesia. The company will collaborate with Vale, Ford and China's Zhejiang Huayou Cobalt Corporation to mine metals for batteries.

 

Indonesian Investment Minister Bahlil Lahadalia stated that the aim of the partnership is to create joint ventures and supply raw materials.

 

Indonesia is seeking to develop the nickel industry to produce batteries for electric cars.

 

Ford made its first investment in Indonesia last month, partnering with Vale Indonesia and Huayou. The company is involved in the joint construction of a $4.5 billion nickel processing plant.

 

Indonesia aims to become the top country in production of electric car batteries. The cooperation between Volkswagen, Vale, Ford and Zhejiang Huayou Cobalt indicates that nickel production, mining and processing will be expanded. This will lead to an increase in demand for the metal and a consequent rise in price.

 

China's industrial production statistics will be released tomorrow. It may also affect nickel prices, as China is the world's largest consumer of this metal and the largest producer of copper-nickel alloys. If China's industrial production statistics show an increase, it will indicate a stronger demand for metals in general. However, higher output may also lead to an increase in nickel mining and production, which in turn will increase the supply of this metal in the global market and lead to a decrease in its price.

 

The H4 time frame shows that the price moved beyond the upper limit of the corrective corridor with a range of 22270–24390, indicating that an uptrend is starting to form. 

 

The H1 time frame shows the price is forming a third ascending wave. At the same time, the third wave has broken through the top of the first wave at the level of 24390, indicating an increased volatility of the third wave.

 

Signal:

Nickel's short-term outlook is to buy.

The target is at the level of 26790.

Take profit could be placed near the level of 25680.

A stop-loss could be placed at the level of 23215.

The bullish trend is short-term, so trading volume should be no more than 2% of your balance.

This content is for informational purposes only and is not intended to be investing advice.

error
More
Comments
New Popular
Send
Commenting rules