SHANGHAI, Aug. 18 (SMM) – On Wednesday’s night trading, SHFE 1701 nickel opened at RMB 81,050/mt and then dived below the 40-day moving average to a session-low of RMB 80,260/mt. The contract later rebounded above the 40-day moving average and closed at RMB 81,030/mt.
On Thursday, SHFE 1701 nickel started at RMB 81,100/mt and then advanced largely to a session-high of RMB 81,760/mt, thanks to a weaker-than-expected tone of US July FOMC meeting, before ranging between RMB 81,400-81,600/mt. During the afternoon business, SHFE 1701 nickel dropped slightly with position closing by longs at first and ended at RMB 81,440/mt after regaining the lost ground, up 0.28%. Trading volumes were up 49,000 to 734,000 lots and positions were down 3,388 to 610,000.
Crude oil is expected to stay firm. Eyes should be on US general election, and final CPI in euro zone to be released tonight. SHFE 1701 nickel is predicted to fluctuate between RMB 81,000-82,000/mt with support at the 40-day moving average tonight.