Verdict – Short-term bullish.
DCE iron ore September contract reached limit-up at 1326.0. Most of trades from last week were done by previous buyers taking gains and new buyers entering market. Thus open interest fell by 13.8% from mid-April. Hourly MACD flattened. Slow stochastic widened. SHFE HRC and Rebar have significant bids working on limit-up levels, indicating a big increase in next trading day following. Short-run bullish.
The first support is 1242.0, the first resistance is 1419.2
