MCX nickel has rallied sharply in the last few sessions. In terms of a wave structure, it has formed a complex pullback. It has retraced nearly 78.6% of the previous fall. The base metal is expected to face resistance as it approaches the key Fibonacci level. The daily momentum indicator is trading near the overbought zone. On the upside, 961.70–966.50 is likely to act as a strong resistance zone. On the downside, nickel can tumble down till 900 ie till the junction of the key daily moving averages and the lower channel line.