Verdict – Short-term neutral.
DCE iron ore January broke down important support at 713.5, which was the neckline of a top reversal pattern. Unless iron ore recover this level with much higher price, iron ore entered a short-run correction phase. Hourly slow stochastic KD created lower dead cross. Hourly MACD created lower dead cross. The next support was the theoretical support of the current round of correction, which was close to August low at 683.5. Technical signals were indicating a potential to test low in next few sessions.
The first support is 683.0. The first resistance is 713.5.
