Verdict – Short-term neutral to bearish.
DCE iron ore September contract slumped after hearing the commodity price supervision news from NDRC. However iron ore started to correct early this morning after a periodic high created over last night. The 1248.0 and 1253.5 became the double top in mid-run. A stand on 1176.0 level could help price to stay in the consolidation area. Hourly MACD flattened. Hourly slow stochastic KD created dead cross below overbought area. Technical signals were indicating a potential to test low in next trading session.
The first support is 1176.0, the first resistance is 1233.0
