Verdict – Short-term neutral.
DCE iron ore May23 contract corrected as expected. Hourly slow stochastic KD created a dead cross below overbought area. Iron ore maintained above 40-hour moving average after November 25th. Thus, it take sometime to evaluate a real correction at this level. Moreover, the intraday low used to be strong support last week at 841.5-842.0. Iron ore maintain neutral in short-run.
The first support is 842.0. The first resistance is 867.5
