SHANGHAI, Nov. 16 (SMM) – On Tuesday’s night trading, SHFE 1701 nickel opened at RMB 90,890/mt and then advanced before fluctuating between RMB 90,800-91,600/mt. The contract finally closed at RMB 91,520/mt.
On Wednesday, SHFE 1701 nickel started at RMB 91,890/mt and then rallied after a slight decline, up to as high as RMB 92,180/mt. The contract later gave up previous gains. During the afternoon trading, SHFE 1701 nickel climbed above the moving average to RMB 92,800/mt. But the contract later dropped slightly after meeting resistance at the 5-day moving average and finally ended at RMB 92,530/mt, down 1.05%. Trading volumes fell 190,000 to 680,000 lots and positions reduced 3,578 to 400,000. US dollar index moved at around 100 on Wednesday and there will be further rising room due to rising expectation on US interest rate hike in December’s meeting. However, falling Chinese yuan counteracted the negative factor to some extent.
SHFE 1701 nickel is expected to range between the 5 and 10-day moving averages for the short term with easing downward pressure.