SHANGHAI, Oct. 12 (SMM) – On Tuesday’s night trading, SHFE 1612 copper opened at RMB 38,060/mt and then dropped below the 5-day moving average to RMB 37,760/mt. The contract later found support at the 10-day moving average and rallied before closing at RMB 37,950/mt. Positions reduced 2,338 to 199,000 and trading volumes declined 108,000 to 89,514 lots.
On Wednesday, Prime Minister of UK agreed MPs to take a vote on details of Brexit plan. UK pound thus rallied and US dollar dropped slightly. SHFE 1612 copper started Wednesday’s trading at RMB 37,950/mt. US dollar fell while crude oil moved higher. SHFE 1612 copper climbed to RMB 38,030/mt with positions opening by longs, but then declined with leaving of longs, considering price to drop. The contract fluctuated at around RMB 37,925/mt, down as low as RMB 37,880/mt, and finally closed at RMB 37,950/mt, down RMB 50/mt. Positions were up 914 to 202,000 and trading volumes were down 36,726 to 160,000 lots. Positions of all SHFE copper contracts reduced 3,078 to 465,000, with trading volumes down 92,274 to 284,000 lots. To sum up, SHFE 1612 copper fluctuated at the 5-day moving average on Wednesday. Crude oil hovered above USD 50/bbl on Wednesday and US dollar remained firm with expectation of interest rate hike.
SHFE 1612 copper should range between RMB 37,800-38,100/mt on Wednesday’s night trading.
