Verdict – Short-term bearish.
DCE iron corrected in narrower range during the day, intra-day low was supported by 783.5, 60 day moving average. Breaking down 777.5- 783.5 area would suggest iron ore entering a long-run bearish market. Otherwise iron ore follow a cyclely correction in weekly level. Iron ore did not test high at all during the day, indicate current market has potential to deepen the correction in next trading day.
The first support is 777.5. The first resistance is 808.0.
