Verdict – Short-term neutral.
DCE iron ore corrected slightly and however maintain in a consolidation area as yesterday expected. From hourly chart, slow stochastic and CCI both corrected from the high, indicating the last push was exhausted. In short run, a breakthrough on 788.5 area would bring back a new round of rebound. In mid-run, iron ore needs to breakthrough 805.5 area to return to a consolidation area. Otherwise iron ore in mid-run still potentially return to bearish trend.
The first support is 775.0. The first resistance is 805.5.
