Nickel Bulls are really putting the work in recovering an impressive 22.5% from the pandemic March lows. Nickel has remained inside a multi-year rising channel (A) and is now facing a strong resistance hurdle before further upside is likely to resume (for the medium-long term).
Nickel mining companies are being urged to mine more nickel, as the Nickel ‘battery' demand is forecast to increase by 14x over the coming years, with the rise of the electric vehicles playing a big part.
Here's what Mr Musk himself had to say:
Musk promises 'Giant Contract' for efficiently mined nickel. Elon Musk has a plea for mining companies: "Please mine more nickel." "Tesla will give you a giant contract for a long period of time if you mine nickel efficiently and in an environmentally sensitive way,"
Any weakness around these current levels (1) will most probably result in a decline for the short-medium term and possibly a re-test of channel support. Above the resistance zone (1) could see prices revisit the September 2019 highs over the long term.
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