Bearish set-up in nickel

MCX Nickel has recently done a channelised pullback. Within the channel it formed a triangular pattern and broke out on the upside to form the third leg of the pullback. The pullback retraced 38.2% of the previous fall. From there it has started a fresh move down and has given a breakout from the channel on the downside. Below the channel the base metal has formed a bearish flag pattern and has given a bearish breakout in the last session. The daily momentum indicator is in a bearish mode. Thus the base metal is poised for a significant decline. The short-term target on the downside is the recent low (787.50) and the pattern target (776). The reversal can be tightened to 837.