FIS Technical – Iron Ore at Weekly Resistance
The weekly chart remains below the CNY 501 resistance and has not yet produced a higher swing low. Technically bearish and driven by short covering, this does suggest the trend could be in transition. Market pullbacks on low volume would confirm this.
The daily chart, although bullish is showing signs of exhaustion in the form weakening momentum. CNY 501 is a technical hotspot. A close above this level would override the momentum on the daily chart, alerting longer term market participants to look for bullish candles on the weekly chart that produce a higher swing low above the CNY 412.5 market low. Ideally price action should remain above the trend support at CNY 457, as the further the pullback the weaker the trending condition.