Verdict – Short-term consolidate at high level.
DCE iron ore September contract closed slight lower than yesterday. A further breakthrough on 897.0 would drive price to a fast growing tunnel. However a breakdown on 874.0 would lead iron ore to short-run correction. From hourly chart, slow stochastic KD created dead cross last night and deepened correction. CCI created divergence with iron ore price. Technical signals are indicating previous rebound has been exhausted. As a result, iron ore potentially consolidate in high level.
The first support is 874.0. The first resistance is 897.0. 