Verdict – Short-term neutral.
DCE iron ore January contract entered a descending tunnel as lower highs and lows during past three trading days. However the last two day saw decreasing volume. Hourly MACD narrowed above 0 axis. Hourly slow stochastic KD created dead cross below overbought area. Once iron ore broke down 700.0 with increasing volume potentially mean the iron ore was back to bearish trend in mid-run. Otherwise iron ore maintain consolidation in wide range.
The first support is 700.0. The first resistance is 728.0.
