Verdict – Short-term neutral.
DCE iron ore followed the rebound of shanghai equity, which has corrected over the entire week. Be aware of short-run money game since the volume boost up in some typical time spots of scalpers, for example, Asian opening, before T-break and after Afternoon starts. Iron ore September contract push up more, however this is the second from the last trading day for speculative traders before delivery month. A breakthrough on 851.5 would bring iron ore back to consolidation in mid-run. The rejection on 851.5 would indicate iron ore still in neutral to bearish territory following the first correction phase according Elliot Wave Theory.
The first support is 807.5. The first resistance is 851.5.