Verdict – Short-term bearish.
DCE iron ore September contract slumped during the day, the contract refreshed the biggest single week drop at 13.63% from September 2021. However, it is worth noting that iron ore also created three-year high open interest level at 1.3 million lots, indicating the current bearish trend was driven by new sellers. In other words, the covering of previous buyers massively would potentially lead to a further correction. Iron ore drop fast during this week in the range of 5-hour average and 10-hour average.
The first support is 638.0,the first resistance is 728.5.
