Going around in circles, the price has returned to around the 70,000 level again!
Although the daily line has shown an 8-day consecutive positive candlestick pattern, I have been emphasizing that this type of consecutive rally has significant flaws: first, the gains are insufficient; second, consecutive rallies in a weak trend are not strong bull market rallies, but rather rebounds in a weak bear market! I am also very worried about turning signals appearing, especially when positive K candlesticks are interrupted and turn negative. In fact, over the past month, this pattern has been consistent—whenever consecutive positive candlesticks appear followed by a negative K, the trend gets disrupted. This is not what you might think is a bear trap or energy accumulation for another explosive surge. Historical results have often proven that in weak trends, the end of a rally and the cessation of positive K candlesticks lead to continued downward movement. We can argue it won't break the bottom, but you must accept the oscillations in a weak trend—this is the pattern and the iron law of Lao Xiao's technical analysis! Yesterday's downward action saw the gains from these two days completely retraced by 5,000 points, and the daily line has formed a consecutive negative pattern. For what follows, Lao Xiao believes the probability of oscillation is relatively high. Even if there is a breakdown, it's not expected to happen this week. The first reason is that many doji stars or small positive K candlesticks appeared during the previous consecutive rally, indicating the price will undergo a secondary correction upon return, with oscillations expected around the 70,000 level! Yesterday's daily line was quite weak—it automatically broke below 73,000, and the bulls showed no counterattack strength whatsoever. During the early morning hours, it only reached 72,000 before coming under pressure again. Today's main theme allows both bulls and bears to participate. First, my main idea is bearish. This morning's highest rebound reached 71,500 before turning downward. If there's another rebound later, this level is expected to break through. For a more stable approach, Lao Xiao believes reaching around 73,000 to look for downside moves is prudent. Using this point as both the daily line's resistance and the previous rally's resistance to make a top-bottom conversion should be fine. Opportunities may be hard to come by, but they will come! The upside position is also easy to identify—simply focus on the suppression level that the previous rally touched multiple times before turning downward. Once it breaks through, it triggers acceleration at the key point. That's right, the 68,500-69,000 zone. I presume your expectations align with mine, so without further ado, let's wait for the opportunity to board the train!
Going around in circles, the price has returned to around the 70,000 level again!
Although the daily line has shown an 8-day consecutive positive candlestick pattern, I have been emphasizing that this type of consecutive rally has significant flaws: first, the gains are insufficient; second, consecutive rallies in a weak trend are not strong bull market rallies, but rather rebounds in a weak bear market! I am also very worried about turning signals appearing, especially when positive K candlesticks are interrupted and turn negative. In fact, over the past month, this pattern has been consistent—whenever consecutive positive candlesticks appear followed by a negative K, the trend gets disrupted. This is not what you might think is a bear trap or energy accumulation for another explosive surge. Historical results have often proven that in weak trends, the end of a rally and the cessation of positive K candlesticks lead to continued downward movement. We can argue it won't break the bottom, but you must accept the oscillations in a weak trend—this is the pattern and the iron law of Lao Xiao's technical analysis!
Yesterday's downward action saw the gains from these two days completely retraced by 5,000 points, and the daily line has formed a consecutive negative pattern. For what follows, Lao Xiao believes the probability of oscillation is relatively high. Even if there is a breakdown, it's not expected to happen this week. The first reason is that many doji stars or small positive K candlesticks appeared during the previous consecutive rally, indicating the price will undergo a secondary correction upon return, with oscillations expected around the 70,000 level!
Yesterday's daily line was quite weak—it automatically broke below 73,000, and the bulls showed no counterattack strength whatsoever. During the early morning hours, it only reached 72,000 before coming under pressure again. Today's main theme allows both bulls and bears to participate. First, my main idea is bearish. This morning's highest rebound reached 71,500 before turning downward. If there's another rebound later, this level is expected to break through. For a more stable approach, Lao Xiao believes reaching around 73,000 to look for downside moves is prudent. Using this point as both the daily line's resistance and the previous rally's resistance to make a top-bottom conversion should be fine. Opportunities may be hard to come by, but they will come!
The upside position is also easy to identify—simply focus on the suppression level that the previous rally touched multiple times before turning downward. Once it breaks through, it triggers acceleration at the key point. That's right, the 68,500-69,000 zone. I presume your expectations align with mine, so without further ado, let's wait for the opportunity to board the train!