SMM Brief on SHFE Copper Prices on Oct. 27

SHANGHAI, Oct. 27 (SMM) –As LME copper prices closed with gains overnight, SHFE 1201 copper contract prices, the most active one, opened RMB 850/mt higher at RMB 57,680/mt on Thursday. After the opening, SHFE three-month copper contract prices met resistance at the 30-day moving average of RMB 58,000/mt before fluctuating at high levels near the daily moving average of RMB 57,500/mt. In the afternoon session, as LME copper prices inched higher, SHFE three-month copper contract prices drifted higher, breaking out the RMB 58,000/mt resistance and climbing as high as RMB 58,070/mt. Finally, the most actively-traded copper contract prices closed at RMB 58,040/mt, up RMB 1,210/mt or 2.13%. Positions for the most actively-traded copper contracts were up 2,848 lots, while trading volumes were down 178,000 lots, with some bulls keeping up with rising prices. SHFE copper prices will face resistance at RMB 58,000/mt over the near term, and will test RMB 59,000/mt reached on September 22nd, once standing above the price mark.