Verdict – Short-term neutral to bearish.
DCE iron ore September is expected to roll to January contract as major contract next Monday. The U.S. China tension once again linked commodities sector and equity very closely. Iron ore in general in a sentiment to test low. DCE iron ore evaporated 35,000 lots of positions which were just built on yesterday, indicating short-run gamers are leaving market. Iron ore in last year consolidate in high area around 915- 924.5 for entire July during rolling. Hourly slow stochastic KD created dead cross last night. Daily stochastic KD is potential to create a dead cross above overbought area.
The first support is 883.5. The first resistance is 915.0.