Verdict – Short-term neutral to bearish.
DCE iron ore January contract opened low and generated a normal gap, iron ore also broke resistance at 777.5, however supported by major 750- 759.0 area. The significant increasing volume and the slight recover during last two hours were indicating iron ore potentially oversold in short-run. Hourly slow stochastic was potentially creating a gold cross in oversold area. Hourly CCI approached the boundary of bearish and neutral area. Short-run technical were indicating a potential to rebound weakly in next session.
The first support is 756.5, the first resistance is 838.5
