SHFE Lead Looks Set to Test Support at 40-Day Moving Average on Weak Economic Data (August 15, 2014)

SHANGHAI, Aug. 15 (SMM) – Lead for October delivery, the most active contract, dipped to a low of RMB 14,350/mt after opening Thursday’s night session at RMB 14,490/mt, and finished down RMB 170/mt at RMB 14,370/mt. During the night session, trading volumes for the SHFE 1410 lead contract totaled 24,262 lots, and positions added 2,108 lots to 34,706 lots.

On Friday, SHFE lead prices surged above the 40-day moving average to hit a high of RMB 14,490/mt at the tail of the trading, and then met resistance at RMB 14,500/mt. The price of soft metal ended down RMB 70/mt, or 0.48%, at RMB 14,470/mt. Trading volumes for the SHFE 1410 lead contract contracted 8,116 lots to 11,890 lots, and positions increased 166 lots to 32,764 lots. The most active SHFE 1410 lead contract is expected to test support at the 40-day moving average in the near term amid weak economic data from China, European countries and the US.