SHANGHAIM, Jun. 19 (SMM) – On Monday, SHFE 1708 copper opened at RMB 45,550/mt and then dropped to RMB 45,430/mt with entering of shorts. People’s Bank of China conducted RMB 120 billion of reverse repos, easing liquidity. Stock and bond markets thus increased, and base metals also advanced. SHFE 1708 copper surged to RMB 45,770/mt, but met resistance at the 5-day moving average. During the afternoon trading, SHFE 1708 copper dropped due to longs taking profits and closed at RMB 45,680/mt, up RMB 110/mt. Positions fell 5,328 to 198,000 and trading volumes reduced 38,212 to 164,000 lots. Positions of all SHFE copper contracts dropped 7,076 to 530,000.
SHFE 1708 copper will be hard to break through in a short term.