Verdict – Short-term neutral to bearish.
DCE iron ore September contract tested important resistance level in 883.0- 884.5, rejected and corrected massively after then. As a result, 883.0 – 884.5 was still a major resistance area for iron ore. It is worth noting that iron ore aggregated open interest increased by 5% during the day while trading volume remain flat compared with last few trading days, indicating new sellers entered the market. Hourly slow stochastic KD created dead cross in the first hour during last night. Hourly MACD created dead cross during the second hour in Asian morning session. Technical signals were indicating a potential testing low in the next session.
The first support is 800.0,the first resistance is 850.0.
