MCX Nickel has recently done a channelized pullback. Within the channel it formed a triangular pattern and broke out on the upside to form a third leg of the pullback. The pullback retraced 38.2% of the previous fall. From there it has fallen down and has given a breakout from the channel on the downside. The fall has taken the form of an impulse and has formed a minor degree pullback that has formed a bearish flag pattern. The base metal is also facing resistance near a medium term falling trend line. Thus one can initiate a fresh short position with reversal above 847. The short-term target on the downside is the recent low, ie 787.50.