Verdict – Short-term neutral.
DCE iron ore rebound strongly during the day, majorly contributed by previous short covering and taking gains. In particular after 14:30 p.m., indicating money flow out to avoid cross holiday risk. After holiday expected a reverse on this speculation. A breakthrough on 809.0 would indicate market recovering to consolidation. A rejection on this level would indicate market mid-run still in bearish territory.
The first support is 778.0. The first resistance is 809.0. 