Verdict – Short-term neutral to bearish.
DCE iron ore May22 contract corrected following the big correction of Shanghai equities and major industrial commodities. Iron ore was resisted twice over the past two trading days at 696.5- 698.5 area. If iron ore broke the 670.0 – 672.0 area, it potentially deepen correction to 645.0 area and fall through 10 day moving average at 659.0. Hourly MACD created dead cross. Hourly slow stochastic KD created lower dead cross. Technical signals were indicating a potential of correction.
The first support is 645.5, the first resistance is 681.5
