Verdict – Short-term neutral.
DCE iron ore January contract fell into neutral area although created higher highs and higher lows. Iron ore failed to expand volume and daily range narrowed after the early week spike. However iron ore maintained in an ascending tunnel from hourly chart, with strong support above 700.0 level. Hourly slow stochastic KD was on the edge of overbought area. Hourly CCI fell from bullish territory to neutral area. Short-run signals were indicating exhaustion and waiting for clear direction.
The first support is 700.0. The first resistance is 728.5.0.
