Verdict – Short-term neutral to bullish.
DCE iron ore September maintained strong and created the second big spike with a gap by opening and increasing trading volume. The next resisting level fell in 735.5- 740.0, which used to be an area with massive trading volume. The iron ore expected to maintain bullish if the gap area from 683.0- 688.5 provide effective support. Hourly CCI fell from bullish territory to neutral area. Hourly slow stochastic KD created dead cross in overbought area. Short-run technicals were indicating a potential to slow down on the rebound.
The first support is 683.0. The first resistance is 735.5.
