SHANGHAI, Oct. 16 (SMM) – SHFE 1512 lead started below the 5-day moving average at RMB 13,555/mt on Thursday night and dived to RMB 13,455/mt responding to LME lead. Later, the contract rebounded and ended at RMB 13,545/mt, down by RMB 35/mt. Positions fell 196 to 15,172.

SHFE 1512 drifted lower to RMB 13,380/mt on Friday and ended RMB 190/mt or 1.4% lower at RMB 13,390/mt. Trading volumes increased 600 to 4,662 lots but positions fell 234 to 15,134.

SHFE 1512 lead falls below the 10-day moving average and technical indicators point downside. Also, position opening by shorts higher than longs. As such, the contract should fall further this evening.