Verdict – Short-term neutral.
DCE iron ore movement were narrowing within the 90 yuan range from 1089.5- 1080.0. Open interest and volume both rebounded slightly. From hourly chart iron ore support moved higher from 1089.5 – 1117.5 – 1130.0. The major resistance on 1078.0- 1080.0. Iron ore from hourly chart created an ascending triangle. Thus, if a breakthrough on 1080.0 would indicate another 90-100 yuan theoretical growth. Otherwise iron ore potentially narrowing the movement in next few days.
The first support is 1089.5, the first resistance is 1180.0
