NIC trade ideas
ASX NIC Close to completing the correctional wave ABCDEASX NIC has put in an ABCDE correctional wave and the completion of the correction to be confirmed by break of wave D - Purple line.
Hopefully still continues the wave pattern to start the impulse waves - dashed arrows
Elliot Wave: ASX NIC forming a wave 1ASX NIC broke the correction wave B high. Indicating a potential Wave 1 formation.
Wave 1 are typically small to enter into a meaningful trade in terms of returns. Best to wait for retracement Wave 2 and enter at the beginning of Wave 3.
NIC longStock screener
Market cap >1b
Average volume >2 mil
P/E <50
Price <$1
Retest of support trendline, looking for a bounce back to weekly resistance.
NICKELReady to go for correction after it complete wave c.
*not a trading tips. wave count might be wrong.
Curious case of Nickel MinesThis is a story about how exponential increase in Nickel's price negatively impacted a fundamentally strong nickel mining company and without any fault from the company itself!!.
⬜ Little bit of background
We all know that commodity prices are skyrocketing due to Russia-Ukraine tensions and in the fear of sanctions on Russia. Russia has major market share in mining and supply of Nicke. Quick google tells me about 5-6% of nickel in the industries supplied by Russia and about 17% of the high purity nickel comes from Russia. With the fear of sanctions, like any other resource which has dependency on Russia, nickel started skyrocketing from past few days.
In fact, it went much higher than any other commodity out in the market due to lack of volume and high short interest. Quick glance on CFD providers says, nickel price went from 24k to 62k.
In reality, it went much further that LME (London Metal Exchange) has to suspend trading nickel. I could not find genuine source on the actual last traded price. But, it seems it went beyond 100k per ton before LME suspending the nickel trade.
⬜ What happened to Nickel Mines??
In general increase in prices of metal positively impacts the companies mining it. But in this case, price of nickel metal went up nearly 5 times and yet, it caused Nickel Mines to drop by 37% from its peak!! How is this possible.
Make no mistake, Nickel mines is fundamentally very strong company with strong financials. Here is a snapshot from my fundamental indicators.
But, something happened which is not in control of the company. Nickel mines sells most of its mined products to a Chinese Nickel and Steel giant - Tsingshan group. Tsingshan is also a major shareholder of Nickel Mines. It so happened that Tsingshan had a short position on Nickel on LME as hedge which went out of proportion due to the event of short squeeze. This has put Tsingshan in the risk of losing billions over margin call.
Being a major supplier and partner to Tsingshan, speculation on Tsingshan dumping nickel mines shares (to come up with additional margin) ran a muck which lead the price to drop from its ATH of 1.79 ti 1.135 in two days. There was also risk of suspending partnership in the unlikely event of Tsingshan going further into financial hardship.
⬜ What is going to happen next?
Nickel is in trading halt in LME and prices in CFD providers isn't moving. Upon checking other markets where nickel is traded, it looked like the peak has been reached and price is calming down. For example, this is snapshot from Indian exchange MCX
Which means, high chances of Tsingshan recovering from the margin calls.
Demand for nickel (which is used mainly for manufacture of Steel and also as a battery metal) is still pretty high and even if Tsingshan is affected in the way it can impact Nickel Mines, it can only be temporary setback till they find new partners. Considering the high price of Nickel, it can only add value to company mining it rather than taking away from it. Hence, I believed that this is an opportunity.
After sometime, trading resumed on Nickel Mines and company too provided their clarification on the matter which reads as below:
This clarified that Nickel Mines is not impacted from this event. Post this, stock price recovered back to 1.40.
Even though you are technical based trader, sometimes, it is important to look beyond technical analysis. I believe this is one such scenario.
NIC long watch closely for another sharp drop down to $1.30, due to LME closing trades, NIC biggest supplier to TSINGSHAN, if drops to $1.30 and consolidates very good entry for swing trade to $1.60 25% profit, i would also set a stop loss just below at $ 1.20 , very bullish this company
NIC nickel minesforming head and shoulder pattern,if breaks could drop as low as $1,05 major support line, im currently long ATM stop losss set for $1.30, exit level $1.61 ,head /shoulder pattern is concerning
nickel minesstrong support at $1.40, almost a bottom of BB, good entry point @$1.40 with exit @$1.63 potential 14% profit, 12-14 day time frame, extremely bullish long term this company as well
Nickel is up but does this need to consolidate more?Negative divergence on RSI
Approaching resistance
Ascending wedge
I am neutral while waiting for a pullback
NIC, Nickel Mines Limited Weekly chartWave 4 on a weekly chart is finishing up, the up side is significant !
$NIC $NIC.ax Bullish Director BuyingNIC Bullish Director On Market Purchase
In Brief
- $500k
- Nickel Supply gap in 2022
- NIC is doubling production capacity
- Strategic Shanghai Fundy increased holdings to 18%
NIC - Still more room to the downside?NIC is expected to drop further down towards its strong level of $0.725 IMHO. I think price may consolidate for a bit like it is currently for a further plunge. My buy zone is around $0.725, for a potential buying opportunity. Lets see how it develops in the next upcoming sessions.
Please note these are my own notes, by no means trading advice. Please do your own research before entering into any trade.
Nickel Mines Limited made BTC huge gains with all the new plantsA NEW FORCE IN
GLOBAL NICKEL
Nickel Mines Limited (‘Nickel Mines’ or ‘the Company’) is an Australian public company emerging as a globally significant, low cost producer of nickel pig iron (‘NPI’), a key ingredient in the production of stainless steel.
Nickel Mines now holds 80% economic interests in the Hengjaya Nickel and Ranger Nickel projects, both of which operate 2 line Rotary Kiln Electric Furnace (‘RKEF’) plants producing NPI within the Indonesia Morowali Industrial Park (‘IMIP’). Nickel Mines also holds an 80% economic interest in the Hengjaya Mineralindo Nickel Mine (‘Hengjaya Mine’), a large tonnage, high grade saprolite deposit located in the Morowali Regency of Central Sulawesi, Indonesia.
In 2021, Nickel Mines has also acquired a 50% interest (to be increased to 80%) in the Angel Nickel project, comprising of four 54 KVA RKEF lines and a 380MW power plant. Don't miss this opportunity.
NIC.ASX_Breakout and Retrace Trade_ShortENTRY: 1.155
SL: 1.300
TP1: 1.065
TP2: 0.965
- ADX<20
- RSI<50,RSI>30
- Daily RS -ve
- Daily FFI -ve
- Daily MACD -ve
- Weekly RS N/A
- Weekly FFI -ve
- Weekly MACD -ve
- Breakdown with good volume on 27 Apr 2021
- Retraced with low volume today
Nickel Courtesy of Mr. MuskWith the screaming & shouting about Nickel, here is one who has potential, with support & resistance zones marked by the red dotted lines. RSI divergence bleeding off so watch for a break & retest of the $0.63c zone
$NIC Cup and handle on the 1h, accumulatoin on the dailyLooking for a break, on volume, of 63. Nickel stock. On the battery train.
$NIC - another old doggy nickel stock starting to show sumthink.Seems like nice consoliditionation around this 60c level. looking for a push through res at 62-63.
NIC | daily running flat potential hey traders,
looking at NIC for a potential move to the upside. longs valid now.
regards,
TM
$NIC - NICKEL MINES - Calm after the storm range contractionNickel Mines has been having a great run as of late. On the 15 minute chart you can see it is consolidating before its next break - hopefully to the upside. I have set an alert to let me know when the OBV crosses above the 30(MA) to take another look and pick an entry.
Nickel Mines Ltd is an Australia-based company that is focused on producing nickel pig iron (NPI). The Company, through its subsidiary PT Hengjaya Mineralindo, owns the Hengjaya Mineralindo Nickel Mine (HM Mine). The HM Mine is located in the Morowali Regency of the east coast province of Central Sulawesi, Indonesia. The HM Mine covers an area of approximately 6,200 hectares.
