SHANGHAI, Aug. 4 (SMM) – SHFE 1610 copper opened lower at RMB 37,710/mt overnight and then dived to RMB 48,450/mt with shorts gathering strength. The price bounced back later due to profit-taking by shorts but fell back again at the tail of trading after touching the 5-day moving average. The contract closed at RMB 37,800/mt, falling RMB 250/mt. Positions were down 248.
On Thursday, SHFE 1610 copper fell below moving averages due to growing shorts after starting lower at RMB 37,850/mt. The red metal closed at RMB 37,620/mt, down RMB 430/mt. Positions were down 74. Positions of all SHFE copper contracts were down 11,004 to 560,000 with trading volumes at 550,000 lots.
SHFE 1610 copper may fall further in the near term should the price drop below the 60-day moving average.