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.
