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SMM Evening Comments (Jan 18)

iconJan 18, 2019 18:21
Source:SMM
SMM Evening Comments

SHANGHAI, Jan 18 (SMM) – SHFE nonferrous metals, except for tin, traded higher on Friday. Zinc surged 3%, nickel jumped 1.3%, copper rose 1.1%, lead advanced 0.7% and aluminium gained 0.6%.

The ferrous complex also saw robust performance. Iron ore soared 3.2%, rebar climbed 2.3%, hot-rolled coil rose 1.9%, coke jumped 1.6% and coking coal gained 0.8%.

Copper: The SHFE 1903 contract extended overnight gains to end the trading day more than 1% higher at 47,860 yuan/mt. This helped it to recover almost all losses since the start of the month. The contract is likely to try to hit 48,000 yuan/mt tonight.

Aluminium: The SHFE 1903 contract climbed to end the day at 13,475 yuan/mt, up 0.6% on the day. Its gains accelerated shortly before closing as shorts cut close to 1,370 lots in five minutes. China injected a record amount of money to stimulate its economy this week, which improved market sentiment. SHFE aluminium is unlikely to extend its growth after the market digests this round of positive signals.

Zinc: The SHFE 1903 contract continued its overnight strong performance and surged 3% on the day, ending at 21,480 yuan/mt, above all short-term moving averages. A buildup of long positions accounted for the gains. Social inventories of refined zinc failed to grow significantly this week, which improved sentiment across longs. The contract is likely to trade rangebound above the upper Bollinger band tonight.

Nickel: The SHFE 1905 contract extended overnight gains to close the trading day 1.3% higher at 94,080 yuan/mt. Its KDJ lines diverged and expanded upwards with an extended MACD red bar. The contract is expected to try to stand firmly above 94,000 yuan/mt tonight.

Lead: Riding on gains across most nonferrous metals, the SHFE 1902 contract rose after it traded in a tight range around 17,680 yuan/mt. It finished the trading day up 0.7% at 17,715 yuan/mt, posting a five-day winning streak. Its five- and 10-day moving averages shaped a golden cross while resistance remains at the 20-day moving average. The contract is likely to try to break above the 20-day moving average tonight.

Tin: As shorts covered their positions, the SHFE 1905 contract hit the day’s high of 148,660 yuan/mt shortly after opening. It then lost those gains as longs took profits. The contract fluctuated during the day and ended 0.1% lower at 148,000 yuan/mt, with support at the 60-day moving average and resistance at the five-day moving average.

Evening comments
Copper
Aluminium
Zinc
Nickel
Tin
Lead

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