Bulls take profit and exit; SHFE lead 2611 contract retreats after rapid rise, closing down 0.15% [SMM Lead Morning News]

SMM, September 23:

Overnight, the LME lead 3M contract opened at $1,938.0/mt on September 22, briefly shot up in Asian trading before quickly falling, then bottomed out and rebounded during European hours. It traded in a range of $1,928.5–1,941.5/mt throughout the day and ultimately closed at $1,932.0/mt, down $3.0/mt or 0.16% from the previous trading day's closing price. Volume was 10,061 lots, a slight contraction, while open interest was 190,116 lots, an increase of 1,908 lots. The daily candlestick recorded a small bearish candlestick.

Overnight, the SHFE lead 2611 contract opened higher at 16,485 yuan/mt in the night session, shot up to 16,495 yuan/mt at the open, piercing the upper Bollinger Band and refreshing the high of this rebound, then quickly pulled back. The night session consolidated lower, dipping to a low of 16,395 yuan/mt, and ultimately closed at 16,405 yuan/mt, down 25 yuan/mt or 0.15% from the previous trading day's closing price. Night session volume was 29,727 lots, a notable contraction, while open interest was 72,581 lots, a decrease of 1,491 lots. The overnight candlestick closed bearish.

Overall, both SHFE and LME retreated after rapid rises, with KDJ turning downward from overbought territory. Short-term risk of chasing highs is accumulating and upward momentum is weakening. However, both still hold above the middle Bollinger Band with support below intact, so room for a deep correction is limited, and they may consolidate at highs.