Verdict – Short-term neutral to bearish.
DCE iron ore September closes lower than yesterday, however settlement price was slightly higher than yesterday. Iron ore prices was snapped by the significant new sellers entering during the last ten minutes. Intra-day correction tested strong support around 603 – 703.5. A breakdown on this area would potentially initiate a deeper correction. Otherwise iron ore potentially stay in the range from 693.0 – 786.0 in mid-run. Hourly MACD created dead cross. Hourly CCI approached bearish territory. Short-run technical were indicating a potential to test low. However the market would recover the loss if the last ten minutes was purely an event-driven push.
The first support is 693.0. The first resistance is 786.0.
