Shanghai copper continues to be weak and volatile, and it is necessary to be cautious in chasing long at a high level

In the external market, Asian London copper around 6330 US dollars / ton around narrow fluctuations, trading is very light, of which 3-month London copper slightly fell 0.
28% to 6328 US dollars / ton, the second consecutive day of decline in ten trading days, but still close to the high set on May 11, 2015, short-term technical pullback demand may not be fully released
.
In terms of positions, on July 31, the position of London copper was 347,000 lots, an increase of 3,281 hands per day, and for six consecutive days, the position of London copper increased, indicating that the popularity of the copper market was higher, and the bulls gradually gained the upper hand
.

On the macro front, the Asian dollar index rebounded weakly and is now trading around 93, close to the low set on May 2 last year
.
In addition, the final Markit manufacturing PMI in the United States in July was 53.
3, a new high since March, and both the expected and preliminary values were 53.
2, indicating that US manufacturing activity continued to expand
.
In the copper industry, Indonesia's Minister of Energy and Mineral Resources Ignasius Jonan said Indonesia would insist on Freeport McMoran Inc.
Sell a majority stake in its local subsidiary under the new deal, but will still allow it to continue operating the world's second-largest copper mine
.

In terms of the market, on August 2, Shanghai electrolytic copper spot contracts reported a discount of 70 yuan / ton - 10 yuan / ton of discount, and the trading price of flat water copper was 49700-49930 yuan / ton
.
Traders in the morning market opened the inquiry receipt mode, the performance picked up, spot from the morning market discount 70-50 yuan / ton, all the way narrowed, after 11 o'clock the plate accelerated the decline, the discount quickly narrowed, good copper almost flat water quotation, flat water copper has narrowed to discount 40-30 yuan / ton, wet copper discount to around 100 yuan holders have shown a reluctance to sell emotions, difficult to find a source
.
Traders mostly deliver long orders to receive goods, good copper shows high spot prices, downstream entry into the market to purchase wet copper and flat water copper, the market performance is rarely active, the trading volume has increased
significantly.

The Shanghai copper 1709 contract oscillated to 50,030 yuan / ton during the day, and the 50,000 mark continued to stabilize, partly driven by the strong rise of Shanghai aluminum, but after the short-term continuous rise, it is necessary to pay attention to the demand for technical pullbacks, and it is necessary to be cautious
in chasing long at a high level.
In terms of operation, it is recommended that the Shanghai copper 1709 contract can sell high and low in the range of 49500-50500 yuan, and the stop loss is 500 yuan / ton
each.