SHFE 1607 Aluminum Loses Key Support Level (2016-5-25)

SHANGHAI, May 25 (SMM) – On Tuesday’s night trading, SHFE 1607 aluminum climbed to RMB 12,380/mt due to short covering after opening at RMB 12,355/mt. But prices then fell back to RMB 12,140/mt before ending at RMB 12,210/mt. 

On Wednesday, short selling sent SHFE 1607 aluminum down to RMB 12,000/mt after starting at RMB 12,210/mt. Finally, the most active contract ended at RMB 12,065/mt. Trading volumes were up 131,000 lots to 302,810 lots, and positions were down 19,990 to 233,592. SHFE 1607 aluminum has lost support at the 40-day moving average, and KDJ is pointing downward, suggesting more declines on the way. The contract should look for floor at the 60-day moving average.