SHANGHAI, Oct. 19 (SMM) – On Tuesday’s night trading, SHFE 1612 copper opened lower at RMB 37,310/mt and then advanced to RMB 37,410/mt. The contract later met resistance at the 5-day moving average and dropped back to RMB 37,250/me with positions opening by shorts due to a firm US dollar. SHFE 1612 copper finally closed at RMB 37,320/mt, up RMB 30/mt. Trading volumes were down 41,408 to 67,340 lots and positions were up 2,010 to 197,820.
On Wednesday, SHFE 1612 copper started at RMB 37,320/mt and climbed to RMB 37,360/mt, leading by rising ferrous metals. But the contract later declined to RMB 37,260/mt after meeting resistance at the 5-day moving average. China’s GDP in Q3 released on Wednesday met market expectation, but large industries value added in September dropped on a monthly basis. SHFE 1612 copper fell to RMB 37,150/mt due to positions opening by shorts, who predicted downstream demand to reduce. The contract finally ended at RMB 37,190/mt, down RMB 100/mt. Trading volumes rose 59,832 to 168,580 and positions increased 1,462 to 197,272. Trading volumes of all SHFE copper contracts were up 93,526 to 291,052 with positions down 662 to 442,046. To sum up, SHFE 1612 copper dropped on Wednesday but still kept range-bound trading.
SFHE 1612 copper is predicted to keep fluctuating between moving averages on Wednesday’s night trading with support at the 40-day moving average.