Nickel Remains In Outperformance Mood

This story features PANORAMIC RESOURCES LIMITED, and other companies. For more info SHARE ANALYSIS: PAN

By Rudi Filapek-Vandyck

Nickel once again outperformed the broader metals complex on Friday and that really shouldn't surprise anyone given the increasingly positive market mood supporting the metal over the weeks past.

Short to medium term targets for nickel have been revised upwards to US$25,000/tonne this month, and some experts have even dared to go higher.

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On Friday, nickel used the overall positive mood on the London Metals Exchange to post various bullish patterns and signals on price charts – enough to have part of the trading community excited about the metal's prospects for the sessions ahead.

From a purely technical point of view, as long as nickel remains priced above US$22,813/tonne, the outlook should remain for higher prices, or so the bullish view goes.

Some chartists believe that if nickel can keep the positive momentum going in the days ahead (see: US$22,813/t above) than it should be able to reach as high as US$26,100, if not to US$28,500 in the medium-term.

On Friday, nickel surged above the top Bollinger band, which is usually seen as a positive momentum indicator. In addition, the metal broke higher over the top of a large flag formation at US$22,813-US$20,729 this morning. If nickel manages to hold above Friday's price levels later today, chartists report this will lead to the creating of bullish medium term targets of US$24,900, US$26,100 and US$28,500.

Nickel also enjoys trendline support at US$22,813, at US$22,328, at US$22,133, and at US$20,729/t.

ASX-listed companies offering nickel exposure include:

– Tectonic Resources ((TTR))

– Falcon Minerals ((FCN)

– Fox Resources ((FXR))

– Panoramic Resources ((PAN))

– Independence Group ((IGO))

– Mincor Resources ((MCR))

– Minara Resources ((MRE))

– Metallica Minerals ((MLM))

– GME Resources ((GME))

– Segue Resources ((SEG))

– Western Areas ((WSA))

– Mirabele Nickel ((MBN))

– Heron Resources ((HRR))

– Poseidon Nickel ((POS))

Nickel futures (3-mth) closed at US$23,700/t on Friday.

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