SHFE and LME Both Meet Resistance at Bollinger Upper Band, SHFE Lead Continues to Consolidate at Highs [SMM Lead Morning News]

SMM, September 7:

Last Friday, the LME lead 3M contract shot up and then pulled back on September 4, opening at $1,902.5/mt. It moved sideways at low levels during Asian trading hours, advanced during European hours, and briefly surged to $1,916.0/mt during the overlapping European and US sessions before encountering resistance near the upper Bollinger Band and retreating. It ultimately closed at $1,906.5/mt, down $0.5/mt, or 0.03%, from the previous trading day's closing price. The full-day trading range was $1,902.5-1,916.0/mt, with volume of 6,536 lots and open interest of 170,497 lots. The daily candlestick was a small bullish candle with a long upper shadow.

Last Friday, the SHFE lead 2610 contract opened at 16,160 yuan/mt in the night session. After briefly dipping to 16,115 yuan/mt at the open, it consolidated higher, touched 16,180 yuan/mt during the session, then pulled back and ultimately closed at 16,130 yuan/mt, unchanged from the previous trading day's closing price. Night session volume was 19,303 lots, with open interest of 65,132 lots. The daily candlestick was a small candle with both upper and lower shadows, moving sideways for several consecutive days, with prices still holding above the middle Bollinger Band and the 16,000 level.

Overall, SHFE and LME lead moved in high synchronization, both retreating late in the session after encountering resistance near the upper Bollinger Band and previous highs. However, both still held above the middle Bollinger Band, with SHFE lead holding above 16,000, and the sideways structure remained intact. Direction still awaits catalysts from fundamentals and LME movements.