SHFE Aluminum Falls Back After Initial Rise (Dec. 21, 2015)

SHANGHAI, Dec. 21 (SMM) – SHFE 1603 aluminum dipped to RMB 10,670/mt after opening at RMB 10,720/mt on Monday. But the most active contract then bounced back to RMB 10,865/mt on short-covering. SHFE 1603 aluminum pared some gains later as longs took profit, and finally ended at RMB 10,830/mt. Trading volumes of SHFE 1603 aluminum were down 40,882 lots to 259,334 lots, and its positions were down 6,836 to 207,170. Total positions of all SHFE aluminum contracts were down 15,768 to 755,020. The most active contract has broken through resistance at the 60-day moving average, and both longs and shorts will be cautious around the 60-day moving average.