Verdict – Short-term neutral.
DCE iron ore Jan contract created both higher highs and higher lows compared to yesterday. However the volatility range became smaller. Iron ore during last three days rebounded with smaller trading volume. From hourly chart, MACD was flattening. Slow stochastic KD was close to the bound of overbought area. If a breakthrough on daily high at 861.5, will potentially test Jan contract record high at 874.0. However a breakdown on 850.0 potentially trigger a fast pull back.
The first support is 819.5. The first resistance is 850.0.
