The weekend consolidation is over, and the monthly candlestick will change in two days. We need to pay extra attention to the market changes in the coming days. Let's systematically review the movements of naked candlesticks at all levels to find potential directional signals.
Let's first look at the monthly chart:
Although the closing hasn't been finalized yet, let's make an assumption about the closing: the body closes below a large bullish candle with a long upper shadow, and there is significant selling pressure above. We can see that the upward momentum is at least being restrained. So, will it consolidate or drop next? Let's take a look at the weekly chart:
We can see that the area around 90,000 to 92,000 is an important support level. The MACD is still declining, which is quite dangerous. When combined with the monthly chart, it must not fall below 90,000; a breach could trigger a large-scale correction. The short-term support is at 85,000, with an extreme at 73,800, both quite far away.
Let's look for trading opportunities in a smaller timeframe, starting with the daily chart:
For friends without short positions around 996, don't rush to open a short. Wait for a break below before entering; it's not too late. The profit may be reduced by a few thousand points, but it's safer. For those holding long positions, set a stop loss at 90,000; this level must not be breached. Even if you have to cut losses, it’s better than being liquidated.
Near 902, which has been tested multiple times as resistance, you can consider a short-term long position with a stop loss of 300 points, or observe the real market for a breakdown to enter a short.
Let's take a look at the 1-hour chart to see how the market is moving now.
The pressure is now at 937 to 940. If it can't break through, it will continue to go down. The key support is at 932, and if it breaks, it is likely to reach around 922. If you're really itching to short, set the stop loss at 944.
For long positions, let's wait a bit near 902.
The morning trading strategy analysis is complete. What do you think, dear viewers? Feel free to discuss and exchange ideas in the comments. Here is your little fan who analyzes without compensation every day (heart emoji).
