SHANGHAI, Nov. 14 (SMM) – On last Friday’s night trading, SHFE 1701 nickel started at RMB 96,100/mt and then increased to RMB 99,800/mt. The contract later dived below the 5-day moving average to RMB 89,040/mt, down above RMB 10,000/mt, forcing liquiditation of both long and short positions, and resulting in significant decline in positions. The contract finally closed at RMB 90,660/mt.
On Monday, SHFE 1701 nickel opened at RMB 90,750/mt and then rallied before stabilizing, but the contract still moved below the moving average. During the afternoon trading, SHFE 1701 nickel dropped and finally ended at RMB 91,680/mt, down 3.22%. Trading volumes increased 415,000 to 1.52 million lots and positions fell 85,000 to 399,000. Most futures contracts stopped surging momentum on Monday in SHFE market after Black Friday, when futures market tumbled across the board. SHFE 1701 nickel advanced to its daily upward limit last Friday and stabilized at lows on Monday with exit of longs and shorts.
SHFE 1701 nickel will be difficult to rally for the nearing future with resistance at the 5-day moving average and negative technical indicators.