Verdict – Short-term bearish.
Iron ore corrected as expected. September contract reached limit-down at 746.0 in the afternoon session. Iron ore created a normal gap from 775.0 – 790.0 area, a rejection in the gap area in mid-run would confirm another round of correction. However in short-run, as the aggregated open interest reached , the highest since June 8th, indicated the correction was led by some aggressive new sellers in the market.
The first support is 700.0,the first resistance is 775.0
