Chart of the day: Shanghai lead futures on bull run
With Hong Kong Exchanges and Clearing, the owner of the London Metal Exchange, planning to open a futures market in Qianhai early next year, the timing is auspicious because base metals are certainly in vogue in mainland China. Over in Shanghai, lead futures have been soaring since August, with both volume and open interest rising in tandem. Prices are at their most overbought ever, but then momentum and the MACD are also at their most bullish ever. While the contract might struggle a little with resistance between 16,375 yuan and 16,575 yuan per tonne, we feel that another sharp lurch to the 18,000-yuan level is very likely in the short term.
Nicole Elliott is a technical analyst