Verdict – Short-term neutral to bearish.
DCE iron ore May22 contract correct massively after creating the high since Oct 14th, indicating a divergence from current area. The upsending trend was almost broken after market went back to 684.0 area, however yet to confirm a breakdown on 672.0 – 676.0 area. Hourly slow stochastic KD created dead cross below overbought area. Hourly CCI broke -100 and entered a bearish territory. Technical signals were indicating iron ore potentially test new low.
The first support is 672.0, the first resistance is 695.0
