SMM News, November 5:
During the session, the SHFE lead 2612 contract opened at 15,850 yuan/mt. After the open, it gained momentum and rallied, successively breaking above the 16,000 and 16,100 yuan/mt psychological levels, and hit an intraday high of 16,175 yuan/mt. In the afternoon, it consolidated on a strong note at elevated levels above 16,100 yuan/mt, and finally closed at 16,140 yuan/mt. It rose 350 yuan/mt from the previous trading day’s closing price, up 2.22%. The daily candlestick closed as a near full-bodied bullish candlestick with minimal upper and lower shadows, reclaiming the middle Bollinger Band. Full-day trading volume was 84,672 lots, a notable increase from the prior day, while open interest stood at 56,995 lots, down 4,741 lots on the day. The three KDJ lines formed a bullish crossover and moved higher, with the J value rising to 36.12, indicating a clear oversold repair and a shift into a rebound pattern. In the short term, with macro headwinds easing, the SHFE lead 2612 contract remained strong in the near term, and the rebound was expected to continue. However, this round of gains was mainly driven by previously bearish funds buying to close positions, with open interest continuing to pull back. If follow-up gains lack support from new bulls adding positions, the sustainability of the rebound still needs to be observed. Prices were more likely to consolidate above the middle band, with a need to retest and confirm support.
