Verdict – Short-term neutral.
DCE iron ore Jan contract tested 874.0 area for the third time during current three weeks and rejected to close with a long upper shadow, indicating the short-run push ended. From short-run, a breakdown on 808.0 area would indicate entering mid-run correction and create a roof area. However a return to bull market needs to breakthrough 873.0. From hourly chart, MACD created two weaker rounds, indicating a bearish signal. Slow stochastic is becoming weaker for three rounds.
The first support is 837.5. The first resistance is 860.0. 