Is Nickel poised for breakout? (NICKEL, HZM, MKA, JAN, KAV, GGP, RGM)

By Richard Mason

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With price movement opening up in a megaphone fashion, a break above $14,000 opens up the possibility of a return to highs of around $20,000

After hitting lows of $7,550 in early 2016, Nickel Futures had doubled by mid-2018. The metal retraced to just under $11,000 by the end of the year but this year has enjoyed a bounce. Price action has hit a key area of resistance between $13,300 and $14,000.  With price movement opening up in a megaphone fashion, a break above $14,000 opens up the possibility of a return to highs of around $20,000. The first target to beat would be the most recent high close of $15475. The Relative Strength Index (RSI) appears poised for a breakout too, having ventured into the hot zone above 60.

This could prove a catalyst for a number of related nickel stocks such as Horizonte Minerals, which has been in a range just above 2p since March. The stock has been narrowing in a triangle formation and looks ready to make a decisive move shortly. Will a positive move in Nickel give the Horizonte share price the boost it needs to breakout upward? An obvious target for Horizonte is the gap around 3-3.2p.

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Author: Richard Mason

This article does not provide any financial advice and is not a recommendation to deal in any securities or product. Investments may fall in value and an investor may lose some or all of their investment. Past performance is not an indicator of future performance.