SMM Brief on SHFE Lead Futures (2013-10-11)

SHANGHAI, Oct. 11 (SMM) – SHFE lead prices, boosted by the report on raising US debt limit for six weeks, rallied to RMB 14,180/mt after starting at RMB 14,140/mt Friday. Despite a slight decline to RMB 14,130/mt later in the day, the most active SHFE lead contract price regained the losses to close out the week at RMB 14,145/mt helped by increasing dip-buying. The prices have stood above the 5-day moving average and tended to test resistance at the 20-day moving average. Traded volumes for the most active SHFE lead contracts increased by 596 lots to 1,232 lots, and positions grew 272 lots to 8,792 lots. The growth in trading and positions, as well as stronger buying support indicated rising bullish mood in the market.