MARKET TALK: LME Nickel Volatile; Mkt Eyes Index Selling

LME nickel remains volatile with market wary of further selling pressure from tail end of commodity index rebalancing, also eyeing technical selling after failure to overcome old record high of $34,950/ton last week, says trader; but given recent extremely volatile price - gaining 12% in two trading days after sharp losses - participants will steer clear of going short, he says. Spreads well bid with cash-to-3-month moving out to $2,202/ton backwardation Monday vs $2,000 Friday though unchanged so far; LME 3-month nickel now $33,200, steady on PM kerb.