Verdict – Short-term neutral to bearish.
Iron ore morning session saw a big increase on new short which drive down price. In the afternoon the recover was also due to a short covering. As a result, iron ore short positions have more initiatives compared with long positions. A breakdown on next resistance 772.5 would smash iron ore towards 756.5 area, because 772.5 is a weak support. Iron ore needs recover 794.5 area to return to neutral area, otherwise iron ore tend to correct in short-run. However MACD was narrowing below 0 axis. Slow stochastic KD is creating gold cross from hourly chart as well. Technical signals are indicating the correction is slowing down.
The first support is 772.5. The first resistance is 794.5.
