Verdict – Short-term neutral.
DCE iron ore January contract successfully broke through 745.0 level however corrected fast and gave back half gains created by yesterday. Market saw divergence views in near periodic high with expanding volume. Hourly slow stochastic KD created gold cross in overbought area. Hourly MACD created dead cross. Iron ore needs to break through 745.0- 755.0 resistance area to return to bullish market. Otherwise iron ore potentially bounce in wide range from 700.0 – 755.0.
The first support is 725.0. The first resistance is 755.0.
