Christmas Market Analysis and Operational Suggestions Summary

Review of Past Christmas Market Trends

Looking back at the past 5 years (2019 - 2023) of Christmas market trends, 4 out of the 5 years saw a bull market following Christmas, with only 2021 experiencing a decline after Christmas. This year, a similar decline occurred on Christmas Eve, which has led the market to be filled with expectations of another rise after Christmas this year.

Current Market Judgment

Overall, it can be judged that the bull market has not yet ended. In terms of short-term trends, it is expected to show a range-bound fluctuation on Saturday. The previous actual retracement was relatively large; however, fortunately, it did not break below the previous low, and a rebound has now occurred. After presenting a bullish engulfing pattern on the four-hour K-line, it has encountered resistance and retraced. Moving forward, it is crucial to pay attention to whether the position of 94800 can become a short-term support level, and whether 97300 can be broken. Additionally, during the two subsequent four-hour retracement processes after the breakout, the position should not be breached. If these conditions are met, it can be confirmed that the 'program effect' caused by this Christmas decline has indeed come to an end.

Suggestion: The current market is still in a retracement phase; it is recommended to maintain a cash position as much as possible. If you wish to trade, it is still possible to catch the right timing for a swing trade.