Verdict – Short-term neutral.

DCE iron ore Jan22 gave back most of gains created by yesterday, and returned to a narrower consolidation range. The intra-day low was higher than last low, as well as the afternoon trading volume on Jan22 contract was extremely small compared to previous days of the week, which indicated market was cautious by the cross weekends volatility. Hourly slow stochastic KD created dead cross. Hourly MACD narrowed fast. In short-run iron ore potentially consolidate in small range.

The first support is 536.5, the first resistance is 579.5

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