ANALYSIS: LME Nickel in Bull Market, Price May Keep Skyrocketing; Time To Hedge!

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Recently we were just talking about the surge in nickel prices and how we were waiting to see if nickel could break through to new highs. Within the past few days, nickel surged again without any trouble and reached a new two-year high, closing above $19,000 per ton on the LME.

LME Nickel price since 2012

LME Nickel price since 2012. Graph by MetalMiner.

Nickel seems not to be losing momentum. We don’t know how much higher nickel can go, but buyers should be totally hedged by now. The move is very bullish and we could certainly see nickel skyrocketing during the rest of 2014.

Don’t forget to read April 2014 MMI analysis before May’s full report comes out this week!

Ipath Dow Jones (JJN) Nickel ETF

Ipath Dow Jones (JJN) Nickel ETF

Nickel ETFs surged in huge trading volumes (yellow circle in the graph above) which confirms the bullish sentiments of investors trading the base metal. This shouldn’t be confused with ETF inflows, which are pretty much irrelevant to us.

What This Means For Metal Buyers

The market is giving signals that nickel is in a bull market. Buyers don’t need to try to guess how high nickel will go. This seems like a perfect time to go long and take 100% risk off the table as further upward movement is likely to come.

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