Verdict – Short-term neutral.
DCE iron ore May22 contract finally closed 5 yuan slight lower than opening of the day. Daily high and low were 676.0 and 652.5 respectively, which also became the first resistance and support. Hourly CCI started to weaken and diverge with iron ore price since December 6th. Hourly slow stochastic KD created dead cross this morning and deepened the correction. Hourly MACD potentially created dead cross. Technical signals were indicating an exhaustion of the rebound. Thus iron ore potential test low during the next few sessions.
The first support is 652.5, the first resistance is 676.0
