SHFE Copper Closes Higher (2016-9-20)

SHANGHAI, Sept. 20 (SMM) – On Monday’s night trading, SHFE 1611 copper started at RMB 37,260/mt and then dropped to RMB 37,190/mt, hurt by positions closing by longs. Later, the contract rose with falling US dollar but declined again after meeting resistance at the 60-day moving average. SHFE 1611 copper finally closed at RMB 37,290/mt, up RMB 180/mt with positions down 1,542.

On Tuesday, SHEF 1611 copper opened at RMB 37,240/mt and gave up some earlier gains due to positions closing by longs. The contract dropped to RMB 37,160/mt and stabilized after finding support at the 40-day moving average. SHFE 1611 copper rose slightly at the tail of trading, thanks to positions closing by shorts, and closed at RMB 37,280/mt, up RMB 170/mt with positions down 6,998. Positions of all SHFE copper contracts reduced 10,778 to 440,000 with trading volumes at 220,000 lots. To sum up, SHFE 1611 copper stayed weak on Tuesday and positions hit a historic low before US Fed’s interest rate decision meeting.

SHFE 1611 copper is expected to find support at the 40-day moving average for the near future.