Verdict – Short-term neutral.
DCE iron ore May22 contract slowed and slight corrected during the day. As expected previously, iron ore tested and created high in mid-December, however lost the area during the first 10 minutes after market opened. The previous five-day trading volume was significantly low compared to any week of December. Hourly CCI fell from bullish territory. Hourly slow stochastic KD started to correct fast after a dead cross created in overbought area. Short-run technical was indicating an exhaustion on the rebound.
The first support is 704.5, the first resistance is 725.5
