Verdict – Short-term neutral to bearish.
DCE iron ore tested 805.5 five times from hourly chart since Oct 16th. However the supports are becoming higher. The current range area is 783.5 – 805.5, a rejection on both bounds would maintain iron ore in consolidation. Open interest evaporated significantly by 40,000 lots, the biggest single down decrease from September 30th, indicating some previous buyers taking gains to avoid risk.
The first support is 783.5. The first resistance is 805.5.
