Bears’ momentum fades, SHFE lead 2612 contract stabilizes at lows [Lead futures brief review]

SMM, November 4:

Intraday, the SHFE lead 2612 contract opened at 15,760 yuan/mt, initially weakened after the open, then consolidated on a weak note at the low end of 15,700-15,750 yuan/mt. Prices stabilized and rebounded before midday, and the rebound extended into the afternoon, but upward momentum was insufficient, leading to a retreat after rapid rise. In late trading, prices consolidated within 15,750-15,800 yuan/mt, eventually closing at 15,790 yuan/mt, edging up 25 yuan/mt, or 0.16%, from the previous trading day's closing price. The full-day pattern showed initial weakness followed by recovery and stabilization at low levels. Total trading volume was 63,048 lots, with open interest at 61,736 lots. In the short term, the SHFE lead 2612 contract remains at low levels, and the oversold structure has not fundamentally reversed. However, as bearish selling momentum weakens and open interest continues to pull back, combined with technical oversold repair, the room for further sharp declines is limited, and there is potential for a technical rebound or stabilization in the near term.