SMM Brief Review - 2011/9/8 SHFE Aluminum Futures

SHANGHAI, Sept. 8 (SMM) – Most active SHFE 1111 aluminum contract opened higher at RMB 17,450/mt today, and fluctuated below the opening price due to profit-taking by the longs as well as position building at higher prices among the shorts. The contract rebounded to the daily moving average at the tail of trading with profit-taking by the shorts, and finally closed at RMB 17,435/mt, up 60/mt or 0.35% from previous trading day. Positions of the contract increased 728 lots to 118,196 lots. Transactions of the contract dropped to over 20,000 lots as investors turned cautious while waiting for China’s August CPI scheduled to be announced tomorrow. SMM expects resistance at EMB 17,450/mt to remain strong in the short term due to stronger shorts momentum than longs.