Bloomberg reported that nickel may drop to USD 13,600 a tonne, implying a 29% slide from current prices, after falling through a trend line.

Mr Jim Stellakis, founder of New York based research firm Technical Alpha, said that nickel tends to move in a direction, has a correction or pause, and then has a second leg that tends to equal the first. He added that "The trend line was broken, which was a negative. This is a warning that the market is not in the same supply and demand state it once was."

Nickel for three month delivery on the London Metal Exchange dropped 44% since reaching a 23 month high on April 16th 2010 as concern about Europe's debt crisis intensified and China implemented measures to cool its property market, potentially curbing demand.

(Sourced from www.bloomberg.net)