Shanghai Aluminum dropped sharply on Thursday, and its technical form was destroyed. The market outlook is worrying. Affected by the sharp fall in aluminum prices in London on Wednesday night, Shanghai Aluminum gapped lower today and took a downtrend in early trading. The technical levels were successively penetrated. After rebounding under the support of spot prices, the stocks reluctantly stood on the 60-day moving average and each contract had a drop of nearly RMB 200/ton. Due to the sharp fall in prices, transactions have been enlarged today, but mostly short-term trading. In addition to the spot April contract, the positions have lightened up to varying degrees, indicating that the current tight supply of spot supplies still exists. From today's strong spot prices can also be seen, early April contract once fell to 16,500 yuan / ton, after the spot price reported steady rise, closing at 166,610 yuan / ton. Heavy aluminum prices in London fell on Wednesday night, and the metal was under pressure from technical selling. After breaking the price of $1910/ton, it triggered a lot of stop-loss. Three-month aluminum prices continued to break through the 60-day and 100-day moving averages and once fell to $1,875/ton. Although the market closed up, it was still unable to return above $1900. The market outlook is worrying. Operational recommendations: rebound to lighten up.
