Verdict – Short-term neutral.
DCE iron ore Jan contract tested high two times during the trading day, however resisted by 892.0, which was 2 yuan from previous high. The two pick up both gave back all gains within half hour, indicating some short-run money speculating. Be aware of rebar jan, which had corrected three days by 2.8%, iron ore at the same period corrected less than 0.85%. From hourly chart, slow stochastic KD deepened after a previous dead cross.
The first support is 861.5. The first resistance is 885.0
