Verdict – Short-term neutral to bearish.
DCE iron ore correct in the morning session and consolidate arround 753.0 level during the afternoon. The ferrous sector position evaporated from previous week. A breakdown on 746.5 level potentially drive market to mid-run bearish. DCE iron ore sep contract technical signals including MACD, slow stocahstic KD and CCI have all created bearish divergence with iron ore price. The volume and positions both dropped from end of May as well for sep contract.
The first support is 746.5. The first resistance is 778.0
