Verdict – Short-term neutral.
DCE iron ore rebounded during the day. However iron ore created lower highs and lows over this week, indicating the consolidation area is narrowing. A rejection on 851.5 would stuck iron ore in consolidation area. The test low area is from 807.5- 820.0, where iron ore saw strong support. From hourly chart, iron ore has entered a rebound tunnel. Slow stochastic KD is widening and remain strong over last four hours.
The first support is 820.0. The first resistance is 836.5.
