Nickel Stocks Could Explode If This Happens

Added: 2026-05-25

[00:00:00]In today's show, we going to conclude our tour around the world of the critical metals. We going to talk about zinc, man, one of the best commodities of the past year, year and a half. We going to talk about lead. Be careful there.

[00:00:14]And we going to talk nickel. Nobody's talking about nickel, but the chart looks quite interesting and because we know nickel explorers and nickel stocks are some of the most popular stocks when this metal gets going in all of the commodity sector, including gold and silver miners. When nickel stocks start to run because there are not that many of them, man, they party.

[00:00:49]You'll see. Let's get into it. Welcome to Hot Trades of the Day, your show for swing trading ideas for the coming days, weeks, and month. Welcome to Hot Trades of the Day. My name is Daniel Wahome.

[00:01:01]Welcome to this channel where we talk not only about the big commodities like gold, silver, and oil. Everybody's doing that. No, we also look into the smaller commodities. And this is part three of the Memorial Day tour around the critical metals. If you missed the previous two videos where we talked about copper, aluminum, among other critical metals, maybe you know, go back, watch those videos.

[00:01:32]See what's happening there.

[00:01:35]So, to the US audience, I wish you a great Memorial Day.

[00:01:39]You're very brave to spend your free time with me. I appreciate that a lot. I'm sure you have better things to do. I don't know, making an apple pie with your kid or you know, what you should do on a day like today?

[00:01:54]This This a good day to call up your best friend and just say, "Hey, let's plan a city trip somewhere for weekend that's coming up, I don't know, this summer, this fall."

[00:02:06]Life is short.

[00:02:08]Make things happen. In the US, you know, go to a city you always wanted to go to.

[00:02:16]If you're in Europe, hey, don't go to the cities that everybody's going to. Don't only go to Paris and to Rome.

[00:02:25]Have you ever been to Vienna? That's a gorgeous city, for example.

[00:02:30]Or Valencia, in Spain.

[00:02:32]Everybody's going to Barcelona, Madrid.

[00:02:35]Maybe take a look at Valencia, too.

[00:02:37]So, enough of the official European Tourism Bureau here. We're getting into the metals, and we're going to start with zinc. And zinc has been on a non-stop Ibiza-like party.

[00:02:52]See how I brought this home with commodities in Spain?

[00:02:57]Then you lucky.

[00:02:59]Absolutely impressive run-up in zinc. We didn't even get any bigger correction ever since we broke out of this big triangle formation. I remember very vividly doing videos here telling you, "Hey, zinc is breaking out of the triangle formation."

[00:03:19]And this is a prime example why it is so important for us to look at long-term consolidation formations, because if we get breakouts and they stick, as you see here, with smaller markets or smaller stocks and smaller commodities, like zinc, man, they run and they party hard. But, while this looks more than impressive and is great, I got to say I would be careful with zinc right now.

[00:03:59]First off, we're approaching this old high from 2022 here.

[00:04:05]That'll be likely a distribution area.

[00:04:09]But what I really don't like is that we are actually making a lower low in the RSI on the daily while the zinc price is still going up.

[00:04:33]And that's not the end all be all, and especially with smaller commodity markets where when we get into a supply crunch, which is the case with zinc, but this is a warning sign. This is a warning sign in combination with how far away we are from the 50-day moving average. Remember, if you looked at my previous videos, if you look at silver or gold, they're right at the 50.

[00:04:59]If you look at commodities like copper, and pretty decent close range to the 50-day.

[00:05:13]Zinc is getting far up there.

[00:05:17]So, we have three factors right now.

[00:05:19]We have a massively overbought RSI that is decreasing already.

[00:05:26]We have a negative divergence in the RSI.

[00:05:29]We're close to the 2022 highs.

[00:05:33]We're far away from the 50-day moving average.

[00:05:39]This is not a market where I say, "I need to be in this right now."

[00:05:44]Let Let this cool down, and maybe there's some opportunity there, but this is not interesting for me right now.

[00:05:54]Interesting for me, a rare interesting situation on the short side could be lead.

[00:06:01]Now, same thing with lead that I would like to show you.

[00:06:08]Right? We have a long long sideways consolidation. We're breaking out.

[00:06:14]We tried it twice. Now we stuck the landing with a third breakout.

[00:06:19]But short-term, mhm.

[00:06:24]This looks rough.

[00:06:26]Right? Same thing, RSI overbought.

[00:06:39]Negative divergence already.

[00:06:42]Again, with commodity these negative divergences are not the end-all be-all at all because we have this special supply demand situation and if the supply is tight, well then the companies have to buy the commodity. So, it can go a lot higher than you would think, but lead is clearly overextended. If we go to the weekly here and let me take this off.

[00:07:13]If we go to the weekly, look how look how high we are in the RSI.

[00:07:19]We're closing in on an 80, but what is really scary about this is if I go back, look at this. I'm already 2018.

[00:07:30]If we go back 10 years, this is how back the data goes, so far back the data goes. Only one time was the RSI as high as it is today.

[00:07:43]And that's when we saw the peak and then a massive correction.

[00:07:50]So, would I short lead right now today after this gap up craziness that's happening?

[00:08:00]Absolutely not. You don't want to fight a strong trend like this.

[00:08:04]But if we see turnaround signs, if we see weakness, if it cannot take out this high right here, then it could be an interesting short candidate. Now, I personally don't short in strong bull markets like a commodity super cycle.

[00:08:20]I prefer to short weak markets and weak stocks.

[00:08:25]But if you're contrarian, this is as good as it gets for a setup in the contrarian trading strategy. Now, let's talk about nickel. That's the one.

[00:08:39]And this is quite interesting.

[00:08:41]Cuz nickel has been the big big underperformer.

[00:08:49]As you can see here, while copper, zinc are making all-time highs running from high to high, aluminum, lead breaking out, nickel way way way below its highs.

[00:09:10]And by the way, this one here, this crazy candle, um that was a hedge fund that blew up, that got caught on the wrong side, uh short nickel, and then the invasion happened of Russia in Ukraine, and all the sanctions happened, and it just completely blew up.

[00:09:24]So, that's uh an aberration. We can cross this out.

[00:09:28]But you see we're still way below December 2022 when things normalized again, below these highs.

[00:09:35]But we can also see nickel forming a base here.

[00:09:40]Okay, this is interesting.

[00:09:43]And we have broken this downtrend that has been in place since 2022. We've broken the second downtrend. We're starting to make higher highs and higher lows. Let me take this off off for you.

[00:09:58]This is really interesting. And the most important thing is, as you can see here, we defended this trend line and we broke below it, even tested it from below, sold off, and then regained it in a power move.

[00:10:15]And this is important because this is a trend line.

[00:10:19]Actually, you know what? I got to switch to the weekly here.

[00:10:22]For this one. Here we go.

[00:10:24]That goes all the way back to 2016. So, this is a 10-year trend line that was in danger of breaking down.

[00:10:35]But now we're back above it.

[00:10:38]And nickel is starting to look interesting. Yes, we got to get through the 200 weekly, which we don't off. Yes, we got to get through this big yellow resistance zone here.

[00:10:49]That's not easy.

[00:10:51]Right?

[00:10:53]But if we do, man, the nickel price is going to run and then especially the nickel stocks are going to party. So, everybody talks about the copper stocks, rightfully so.

[00:11:09]But for some reason, investors love the nickels the nickel stocks. Well, I know the reason.

[00:11:18]The reason is when these stocks start to run, they really run.

[00:11:25]Like Top Gun afterburner style.

[00:11:29]So, this is worth keeping a close eye on. Now, if nickel sells off, how low can we go?

[00:11:37]This is the weekly, so this is pretty nice to see.

[00:11:42]We got gap fills on the close that could be here and here.

[00:11:50]If we switch to the daily, we see that in this area is the 50-day, so that's an interesting area for an open position. And we see that the 200-day is moving up. So, we got double support here with this 10-year-old uptrend that we regained successfully and got successfully retested here. We get 200-day moving up.

[00:12:10]So, probably that's going to come close to this support as well. So, that would be my two entries into the nickel market if you are interested in it. But, I want to show you two of the nickel stocks and see what's going on there because if nickel breaks out, it could be, I'm saying could because I'm not your financial advisor, but it could be an interesting play, almost like an option play on the nickel price to get into one of the established, more established, nickel companies. There are plenty of small junior explorers that are not that important. There are not that many bigger, more popular, quality companies. So, let's talk about the top two.

[00:13:05]And that is Canada Nickel.

[00:13:11]And look at these parties that this stock gets into once it gets going.

[00:13:18]This is just 2025.

[00:13:21]Here was another one.

[00:13:25]And then obviously we have the Ibiza version of it right here.

[00:13:32]What a monster rally.

[00:13:34]Is that like a 10-bagger? No, it's like a 4,000%.

[00:13:39]Wild.

[00:13:41]So, as you can see, this is a wild stock that has serious moves to the upside.

[00:13:48]The long-term downtrend is broken. We broke it last fall.

[00:13:55]That's positive, right? We are making higher highs, higher lows, but this uptrend that we started in the fall of 2025 is in danger to be broken, which would mean we would get a sell-off in the stock.

[00:14:14]As you see, we're fighting with it and the 50-day moving average right now.

[00:14:20]We would definitely go down at least to the 200 and probably this area of the previous lows.

[00:14:26]So, that's another 10% sell-off.

[00:14:30]That might not be it. We might I can see us undercut the 200. Again, you know how this works with these type of mining stocks, the liquidity grabs.

[00:14:39]If we switch to the weekly, you see the 50 weekly is coming up quickly. So, that will give us additional support in the area of around 140-ish.

[00:14:51]Right? Which is where the 200-day is, then the 50 weekly, and then this low right here.

[00:14:57]If we think that we're going to get a correction in the metal, then this could very likely mean that we're going to get a correction in Canada Nickel. But if overall nickel starts to look good, and it's one of the last laggards. Now, you saw lead broke out.

[00:15:14]Right?

[00:15:15]Zinc is already partying like there's no tomorrow.

[00:15:21]And then people start to get into nickel. This one can really run.

[00:15:27]The other one is Talon Metals, which looks quite interesting.

[00:15:38]And as you can see, yeah.

[00:15:42]What is seven-bagger? This is like Ibiza with like two after-hours. One is not enough, right? It had to be two after-hour parties that are happening right here.

[00:15:52]Now, this is double top territory.

[00:15:55]So, we need to see what's going on here.

[00:15:58]Are we really going to break below the 200-day and the support zone? And that's why I'm showing you these stocks right now, right? We want to be ahead of the market. So, we want to put these stocks on the watchlist.

[00:16:11]And we want to see how they behave.

[00:16:13]Does the 200 hold?

[00:16:17]And if then nickel forms another bottom or breaks out to the upside, does this trigger the next party up or are we breaking below it? Then we definitely have to assume that we're going to get gap filled right here down here at this light blue area, which would be That's a 30% drop, which would make sense from if this turns out to be a top formation, right? And again, should we rush into buying this stock right now? No, we don't need to. Not with this setup.

[00:16:54]But we want to know about it.

[00:16:57]We want to put it on the watchlist. We want to be ready.

[00:17:00]We want to see how it behaves.

[00:17:03]Where we are or getting to, which is the blue support zone and the golden line, the 200-day moving average.

[00:17:10]And then we can see.

[00:17:12]Because if nickel starts to go, the nick These nickel top stocks really going to run.

[00:17:20]That is it for today. Enough of the German.

[00:17:23]Enjoy your Memorial Day. If you're in Europe, well, welcome to my world. We are working today, but that's all right.

[00:17:29]It's a beautiful day outside. So, let's enjoy life and we'll see us tomorrow.

[00:17:34]Have a great day. Bye-bye.