NP Breakout

As we watch right now
We are witnessing the last 24 hours a reversal bullish breakout of the NP & LME Ni stocks.
For 6 months the NP has been in this 15 year lowhole of 3.70-4.10 and 7 prior breakout attempts have failed.
The interim top of this range has been 4.00-4.10 and has only been breached twice, the last time in midMarch failed and dropped back to 3.90 but since then several higher lows and an elongated wedge forming.

Also the 2 yearly bear market in the NP broke in February 2016 when the NP held above 3.70
Also the LME 2 yearly bear market broke in December 2015 when the rising stock chart broke down and has broken down ever since now on a 2ndary breakdown pattern.

Every week the NP stayed above 3.70 in March was BULLISH for the NP as its downtrend channel  since June 2014 was cleared and broken , the mid Feb 2016 continuationof this channel broke down and reversed sharply into a masssive spike to 4.20.

Now the shorts have turned longs on NP.


http://www.*****net.com/charts/metals/base/spot-nickel-6m-Large.gif

YET THE LME is breaking down in a direct correlation with the NP rise.
420KT is a key level
If that breaks then 390KT-370KT is the next level

http://www.*****net.com/charts/metals/base/lme-warehouse-nickel-1y-Large.gif

On these figures, looks to me like we may see a NP move sharply higher by 10%-20% like IOP Zip & GP all did in their rebound phase.

I predicted NP will spike soon like IOP did and we may wake up to a NP of 4.80 overnight.

If NP recovers to where many other commodities have the last 6 months it should be at 4.80 right now.

For MBN, a rising NP and bearish BRL is BULLISH and boosts current profit margins from 20% to 30%-40% ex stockpile selling. With Stockpile selling its margin booms to 64% on my maths and they can sell these stockpiles for 2 years with trucking and port loading costs and stay alive.