ZOID RESEARCH 19- MAY-2014 : NICKEL

Excerpt from weekly report: Nickel slumped the most in 31 months on the London Metal Exchange this week as investors ascertained a rally that lifted the metal’s price as much as 30+ percent this year to be overstated. During the week 3 month forward LME nickel prices declined over 5% and trading at $19150/MT. We believe profit booking on long positions is the major reason for commodity prices to trade down. If we look at the derivatives front at the LME counter, we see that the commodity prices as of Thursday has declined from the latest high with higher volume and marginal decline in the open interest suggesting the investors have booked their positions from higher. Going ahead we might witness some more price correction in the next week while overall trend still holds bullish.

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