Verdict – Short-term neutral.
DCE iron ore January contract slight rebound but in general neutral, as expected yesterday. Hourly slow stochastic KD was brewing a breakthrough on the lower bound of overbought territory. Hourly CCI was testing the support on the lower bound of bullish territory. However from daily chart, MACD created gold cross. Daily slow stochastic also rebound fast after a gold cross in oversold area. A breakthrough on 696-700 area would suggest a big pick up following next week.
The first support is 652.0, the first resistance is 700.0
