Verdict – Short-term neutral to bearish.
DCE iron ore May22 contract corrected significantly during the day and recovered major loss during the last half hour. The previous support 673.0 became a major resistance, which used to be a neckline of a multiple tops area – a traditional bearish top reversal pattern in long-run. However an effective breakthrough on 673.0 area would bring market back to neutral. Hourly slow stochastic KD approached oversold boundary and flattened. Technical signals were indicating a neutral to bullish market currently.
The first support is 651.0, the first resistance is 673.0
