Market Analysis: Limited Rebound Amid Mixed Trends

Monday’s overall market rebound lacked strong momentum. Iron ore remained steady, but coking coal dropped over 2% in the night session, applying downward pressure on the broader market.

Key Observations

  1. Iron Ore Stability Provides Support
    • Despite challenges, iron ore prices have not broken key support levels, offering some stability to the market.
  2. Short-Term Range Expectations
    • As long as the lower boundary around 3250 holds, the likelihood of a positive weekly close remains high.
  3. Resistance Levels Remain Firm
    • The upper limit of the current range remains capped at 3380, with the market oscillating between these levels.

Outlook and Strategy

  • Short-Term View: Range-bound trading is expected to continue, with movement confined to 3250-3380.
  • Weekly Trend: If support levels hold, a positive weekly close is likely.
  • Trading Focus: Monitor for potential tests of key levels, with opportunities for short-term trades within the defined range.

The market’s current state suggests a cautious approach, with emphasis on short-term strategies and vigilant observation of support and resistance dynamics.

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