Verdict – Short-term neutral.
DCE iron ore January contract tested monthly low and recover fast to neutral area. If a new breakdown on the low of 686.0, iron ore potentially return to bear market in mid-run. Hourly iron ore was stuck in a correction phase because the highs of the descending tunnel were becoming lower. Hourly MACD flattened. Hourly CCI escaped bearish territory. The short-run correction was unavoidable, however the correction potentially become narrower and limited.
The first support is 686.0, the first resistance is 732.0