Shanghai copper volatility rose slightly, and the risk of a pullback from a high level remains

In the external market, Asian market London copper around 6366 US dollars / ton around a narrow range, of which 3-month London copper slightly rose 0.
23% to 6360 US dollars / ton, but still close to the high set on May 11, 2015, short-term need to pay attention to technical pullback demand
.
In terms of positions, on August 2, the position of London copper was 344,000 lots, a sharp increase of 11,672 lots per day, indicating that funds have re-entered, but short-term copper prices have fallen into high oscillations, and long-short trading is still relatively cautious
.

On the macro front, the Asian dollar index fell into low oscillations for the fifth day in a row, trading around 92.
7 in early trading, close to the low set on May 2 last year
.
The final Markit services PMI in the United States came in at 54.
7 in July, up from 54.
2 in the preliminary reading and 54.
2 in the previous month, the highest
since January.
In the copper industry, the Ministry of Environmental Protection took the lead in issuing pollution discharge permits to 15 industries such as thermal power, iron and steel, non-ferrous metal smelting, coking and petroleum refining in 2017, of which enterprises in the paper and thermal power industries required to obtain pollution discharge permits by the end of June, and the other 13 industries were fully launched
in the second half of 2017.

In terms of the market, the current copper is difficult to maintain the premium quotation structure, the morning market high cash exchange sentiment made the holders cut the quotation early, since the premium of 10 yuan / ton due to the inability to trade was forced to the vicinity of flat water, wet copper discount 100 yuan transaction is acceptable, dragging flat water copper to 30 yuan / ton
.
There were divergent performances of holders during the day, some of the price holders were weak in trading, at the end of the afternoon, the market once fell below 50,000, the willingness of the early value preservation recipients to ship for cash increased, and the transaction of those who took the initiative to reduce the discount improved compared with yesterday morning, and the demand side has the space and ability
to reduce prices.
Although it is trending towards delivery, the spot market has started a premium push trend this week, and the market still lacks a certain degree of
recognition.
Next week, as delivery approaches, although the premium structure will be correct, the size of the premium will still be guided by the basis change

During the day, the Shanghai copper 1710 contract oscillation rose slightly to 50420 yuan / ton, and the 50,000 mark was recovered, but the risk of a high pullback remained
.
At the same time, the market is currently focused on the US non-farm payrolls data on Friday, which will affect the Fed's September interest rate hike expectations, and market caution climbs
before the market.
In operation, it is recommended that the Shanghai copper 1709 contract can sell high and low in the range of 49800-50600 yuan, and the stop loss is 500 yuan / ton
each.