Will it make a double top??
This is exactly that i am writing as of now, i am not saying double top is made or not, i am just giving a cautious outlook to nickel as a trading commodity.
Nickel has a huge resistance at 1360 and 1358.
Last two days on daily charts, nickel has hit about 1360 and come back down, yesterdays candle i.e. 4th march 2008 candle shows the market nickel making an Harami pattern, indicating continuation of up trend, however toda as well i.e. on 5th march Nickel has failed to close above 1360 and closed at 1352 (31 March contract, only near month contracts are discussed).
Furhter there are three continuous white candles prior to 4th march 2008, thus indicating a 'Three White Soldiers', patterns making the asset due for some slowdown. Now, we need to watch for tomorrow as well, in case Nickel does not move above 1360 successfully and comes down then we must expect downside on Nickerl, and possible targets in that case, i.e. if and only if Nickel makes double top will be,around Rs. 1180 in nest one month, however we need confirmations for that and probably next two days should give a better idea of what holds for nickel..
Since i don't have intraday charts of Commodities cannot specifically comment on the movement of commodities..
Anyways, brave person like me will go short on Nickel, hypothetically for now, since i don't have enough money for that, so assume now i am short on Nickel at 1352..
So lets c what we have in store for next two days..
This transcript is not a tip or recommendation, it is purely my view based on technical analysis, and the author doesnot hold any responsibility over the profits or losses made by the reader, based on the above material published..
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