Shanghai copper is under pressure and lacks key upward momentum

In terms of external trading, Asian Lun copper fluctuated in a narrow range around 6460 US dollars / ton, and intraday volatility continued to be lower than that of Shanghai copper, of which 3-month London copper traded at 6479-6437 US dollars / ton, up slightly 0.
29%, and continued to pay attention to technical pullback demand
in the short term.
In terms of positions, on August 8, the position of London copper was 346,000 lots, an increase of 445 per day, and the recent increase in London copper positions for four consecutive weeks, copper price oscillation stabilized, showing that bulls gradually occupy the advantage, long confidence climbed
.

On the macro front, the Asian dollar index rebounded and is now trading around 93.
7, still close to its low since May 2016
.
Today, the People's Bank of China conducted a 7-day reverse repurchase operation of 50 billion yuan and a 14-day reverse repurchase operation of 40 billion yuan in the open market, continuing to release liquidity
to the market.
At the same time, it is also necessary to pay attention to China's July credit data
during the day.
In the copper industry, customs data showed that Japan's JXTG cut its annual production target for Chile copper mines, due to unexpected interruptions in output due to power outages in May, and the company expects copper concentrate production of 110,000 tons in the fiscal year ending March 31 next year, down from 130,000 tons
expected in May.

In terms of the market, on August 10, Shanghai electrolytic copper spot reported a discount of 50 yuan / ton - flat water for the current month's contract, and the trading price of flat water copper was 50450-50550 yuan / ton
.
The basis of copper in Shanghai is basically stable in the range of 150-200 yuan / ton, and the market quotation is relatively stable
.
Due to the small number of good copper goods, the quotation is near Pingshui, and the space for price reduction is limited
.
Imported copper accounts for a gradual increase in the supply of flat water copper, and the willingness of holders to exchange cash is strong, and the quotation is as low as 50 yuan / ton to the first line, and the price difference with good copper is widened, and the wet copper discount is about 130 yuan / ton to buy stable
.
The overall performance of the market is flat, the quotation is loose, the transaction difficulty has improved significantly, and the cautious wait-and-see atmosphere is still strong
.

The Shanghai copper 1710 contract fell under pressure to 50,790 yuan / ton, failing to extend yesterday's rally, indicating that the upper rebound was blocked, especially the resistance at the mark near 51,000 yuan / ton, due to the lack of key upward momentum
.
In terms of operation, it is recommended that the Shanghai copper 1710 contract can be backed above 50,000 yuan to bargain long, enter the market for reference around 50,500 yuan, and target 51,500 yuan / ton
.