SHFE lead 2611 contract moved downwards after a higher opening on the first trading day after the holiday, closing with a large bearish candlestick [Lead Futures Brief Comment]

SMM, October 8:

Today marked the first trading day after the National Day holiday. The SHFE lead 2611 contract opened higher at 16,310 yuan/mt, briefly shot up to 16,335 yuan/mt after the open, then consolidated and pulled back. In the afternoon, it accelerated its decline, dipping to a low of 16,070 yuan/mt, and finally closed at 16,090 yuan/mt, down 90 yuan/mt or 0.56% from the previous trading day's closing price. Total trading volume for the day was 56,738 lots, with open interest at 64,458 lots, and the daily candlestick recorded a large bearish candle. After the daily KDJ formed a death cross, the J value quickly pulled back to around 13. In the short term, the market shifted from pre-holiday consolidation to a subdued tone. Open interest rebounded slightly, indicating that bulls took profits after the holiday while bears made modest entries. Today, the SMM #1 lead average price remained flat compared with the last trading day before the holiday. On the first day after the holiday, downstream enterprises gradually made inquiries and purchases, with moderate buying interest, in contrast to the wait-and-see attitude typically seen in previous years upon returning from holidays. The SHFE lead 2611 contract is expected to consolidate on a subdued note in the short term.

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