The rubber shock is flat and the possibility of an upward breakout is small

At the Tokyo rubber market at the end of last week, the new October contract opened slightly higher than the September contract on the back of the lack of strong and profitable materials, and then fell back to close near 151.
5 yen
.
After following the rebound of chemical commodities in the Shanghai market, the main contract of Shanghai rubber fell back to below the integer level of 10,000 yuan again, due to the impact of the new coronavirus epidemic on the automobile market, the sharp reduction in tire export demand led to the accumulation of domestic factory inventory is more serious, and the possibility
of adjusting the operating rate in the later period is not excluded.
On the other hand, the domestic market is about to enter the May Day holiday, because considering the two triggers of the epidemic, the government will still restrict the flow of people during the holiday, and the domestic demand in the domestic tire market has a limited
effect on the market.
Similarly, before the Tokyo market closes during the Golden Week, short-term long positions in the early stage may be concentrated to take profits, and the far month contract breaks through the previous high of 156.
9 yen before the end of the month, and the upward breakthrough is less
likely.

In terms of spot, the April FOB price of No.
3 cigarette tablets on April 24 was around 45.
72 baht, up 1.
13 baht
from the previous session.
The April FOB price of No.
20 label rubber was around 37.
79 baht, down 0.
13 baht
from the previous session.
The USS spot price was around 36.
93 baht, up 0.
07 baht
from the previous session.

From a technical point of view, the RSS September contract is forming a range-bound oscillation with the short-term conversion line of 151 yen as the midline
.
The upper and lower limits were 145.
8 yen at the previous low and 156.
9 yen
at the high point, respectively.
The medium-term benchmark will remain at the level of 9 trading days around 147 yen, and although the late line is about to cross the price entity, the thicker clouds above will put heavier pressure
on the price in the absence of key bullish materials.
In terms of trading strategy, it is recommended to think of range oscillation and try light positions
.