Shanghai copper shock consolidation is treated with a bearish idea

In terms of external trading, London copper opened low at 4710 US dollars / ton, after the Asian market short market continued to flow out, London copper Shun daily moving average, and then consolidated around 4723 US dollars / ton, intraday high to 4730 US dollars / ton, European session with the US index higher to 97.
962, bears have increased positions, copper prices leaked gradually away from the daily moving average, as of 17:00, London copper reported 4706.
5 US dollars / ton
。 After the release of China's CPI and PPI data, copper prices stabilized for a while, but during the European session, under the pressure of a strong dollar, the atmosphere turned bearish, and there was a risk of stepping back on the overnight long lower shadow below, which is expected to run at $4690-4740 / ton
.

On the macro front, the dollar rose sharply and crude oil fluctuated
.
China's September CPI rose 1.
9% year-on-year, higher than expected 1.
6% vs 1.
3% previously; PPI rose 0.
1% year-on-year versus -0.
3% expected, ending a 54-month streak of year-on-year declines and turning positive from negative to positive
for the first time since March 2012.
The recovery in CPI was mainly due to the recovery of food prices and kimono prices; PPI turned positive mainly due to the alleviation of the contradiction between supply and demand in the domestic industrial industry, the inventory and sales volume of key industries have shown a good trend, coupled with the international market crude oil, iron ore, non-ferrous metals and other commodities have improved, domestic industrial product prices continue to rise, but PPI in the second half of the year is expected to be in the market
.
The message is empty
.

In terms of the market, Shanghai copper opened sharply lower than 500 yuan / ton, near the month of the change of the basis inverted, now copper premium continues to narrow, supply brands diverse, good copper quotations remain near the delivery level, speculators wait and see, a small number of morning into the market to absorb low-priced goods, downstream bargain into the market, the transaction slightly warmed up compared with the previous day, the basis of the afternoon period expanded to about 100 yuan / ton, the near strength far weak pattern is more obvious, good copper premium passive pullback to 80-90 yuan / ton, wet copper has been in the flat water line, There is almost no quotation for flat water copper, the transaction price has dropped to 37530-37600 yuan / ton, the downstream transaction is still not improving, individual traders lower prices to close low prices good copper sources, the market waits for the operation after changing months
.

On the whole, the rapid rise of the US dollar has put pressure on copper prices, but the continued depreciation of the RMB exchange rate and the decline in inventories in the two markets have supported domestic copper prices; In terms of spot, the willingness to raise the price of spot has been relaxed, the transaction is dominated by middlemen, the downstream is mainly wait-and-see, and the actual transaction is rare
.