Verdict – Short-term neutral.
DCE iron ore January contract corrected significantly with expanding volume. Hourly iron ore fell back to a descending trend. Hourly MACD widened in bearish territory. Hourly slow stochastic KD dropped to oversold area. Hourly CCI dropped to bearish territory. A breakdown on 652.0 level would indicate iron ore went back to mid-run bearish. Otherwise, iron ore would ground up from this level. The open interest increased and closed to year-high level, indicating a divergence between bull and bear camps.
The first support is 652.0. The first resistance is 687.0
