Verdict – Short-term neutral.
DCE iron ore January contract retreated with expanding volume, however the closing was higher than last trading day. The decrease in open interest indicated both previous buyers and sellers were leaving the market. The short-run high was confirmed at 736.5 area. Hourly CCI saw a rebound during last hour, along with a higher pick up on candle chart, both indicated an exhaustion to intra-day selling. A breakdown on 702.5 in next few sessions potentially trigger a true correction. Otherwise, iron ore was in a consolidation area.
The first support is 700.0. The first resistance is 721.0.
