Verdict – Short-term neutral.
DCE iron ore rebounded significantly in the afternoon session, along with major commodities and Shanghai equity all recovered the sentiments and rebounded before and after lunch. However open interest and volume growth were not significant, indicating a testing period for market to return to neutral. A breakthrough on 1008.0 area would potentially bring iron ore market into neutral to bullish territory. A rejection would mean iron ore still in a bearish tunnel. Hourly KD grew fast after created gold cross in Feb 3rd. Hourly CCI created the highest since Jan 4th.
The first support is 925.0, the first resistance is 1008.0
