SHANGHAI, Aug. 22 (SMM) – SHFE 1710 aluminum slid to RMB 16,250/mt due to profit-taking by longs after opening at RMB 16,490/mt on Tuesday. With closing by shorts at relatively lows and entering of longs, the contract gradually pared losses, and finally closed at RMB 16,385/mt. Trading volumes reduced to 418,884 lots and positions fell 13,190 to 354,912 lots. Positions of all SHFE aluminum contracts grew 14,034 lots to 932,608 lots.
SHFE aluminum moved lower to test the 5-day moving average for three days in a row, but managed to bounce back thanks to longs’ support. The main price range moved higher slowly despite 3-day negative closing, a sign that longs still hanged on there.
SMM expects aluminum to hover at highs in the short term, and eyes should be on its support at the 5-day moving average.