FIS Technical – DCE Iron Ore May 20
On the last report we highlighted that although technically bullish there were signs that we could see a direction change. Price traded above CNY 684.5 creating the negative divergence as predicted with the resistance zone holding and price closing below the 200 period MA. Meanwhile market longs continued to exit on upside moves resulting in the Aggregate open interest dropping. The Result was a CNY 70 drop in three days.