Verdict – Short-term bearish.
DCE iron ore September contract continued correction, with a further correction expectation in next trading day. Hourly stochastic KD slumped after a dead cross in the first hourly of DCE night session yesterday. Hourly CCI however finally flattened after created a year-low level. Hourly candles filled the previous gap created after Labor Day Holiday and indicated the market lost the support in that gap area. Technical signals were indicating a bearish trend in continuance.
The first support is 1190.0, the first resistance is 1266.0
