SHFE lead 2611 contract J value enters oversold territory, dips and rebounds to close with a long lower shadow [Lead Futures Brief Comment]

SMM, October 9:

The SHFE lead 2611 contract opened at 15,890 yuan/mt in intraday trading, rebounded to near the 16,000 mark in early trading, then moved sideways between 15,970-16,020 yuan/mt, and finally closed at 15,980 yuan/mt, down 110 yuan/mt or 0.68% from yesterday's closing price. Total trading volume was 72,425 lots and open interest was 62,050 lots. The daily candlestick recorded a small bearish candlestick with a long lower shadow. The daily KDJ's J value dropped to 1.87, entering oversold territory. Today's price fell with increased volume while open interest pulled back, mainly driven by bulls stopping out and exiting, and the downward momentum has weakened somewhat. The SHFE lead 2611 contract is expected to consolidate on a subdued note in the short term, and there may be a technical rebound after oversold conditions, but the gap left by last night's jump may limit the rebound space.

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