SHFE Copper Ends with Gains (2017-1-9)

SHANGHAI, Jan. 9 (SMM) – On Monday, SHFE 1703 copper opened at RMB 45,400/mt. Chinese yuan continued falling to around 6.8750 after opening. SHFE 1703 copper thus advanced to RMB 45,650/mt with entering of longs and then fluctuated. During the afternoon trading, SHFE 1703 copper dipped and rallied to RMB 45,770/mt thanks to short covering after finding support at RMB 45,450/mt. Later, the contract rolled back after meeting resistance at the 20-day moving average and finally ended at RMB 45,730/mt. Positions increased 2,112 to 204,000 and trading volumes fell 50,280 to 202,000 lots. Positions of all SHFE copper contracts were up 318 to 483,000 with trading volumes down 74,736 to 298,000 lots. SHFE 1703 copper swung widely on Monday.

Eyes should be on US’s LMCI employment on Monday’s night, which will be lower than previous level, according to employment data released recently, weighing down base metals. SHFE 1703 copper will challenge the 20-day moving average on Monday’s night trading.