The adjacent chart shows price movement of MCX nickel continuous contract. The base metal has been trading in a multi-month falling channel. Recently, it found support near the lower end of a medium-term falling channel and formed a pullback. However, it faced resistance near the key daily moving averages (DMAs). Thus, the base metal has started falling once again. Any minor degree bounce is being caped by the 20-DMA. Hence, unless 20-DMA, ie Rs702, is crossed nickel can fall towards the channel line, which is near Rs.650 and the monthly lower Bollinger band, which is near Rs.646.
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