Nickel: Bounce on the cards

As can be seen from the chart, from the high of 997.40, the MCX nickel has formed a five-wave decline. As per the Elliott Wave Theory, a five-wave decline is usually followed by a three-wave pullback. Thus, from the current level, nickel is expected to go for a bounce. The daily momentum indicator has turned its trajectory up from the oversold level, thus it is also pointing towards a bounce. On the upside, 930.50 and 943 are the key levels to watch out for. The view holds true as long as the low of 889.20 remains intact on closing basis.