Weekly analysis: Crucial moments
Last week's review and upcoming challenges Last week, the market saw a key technical move, forming a clear downward probe and closing at a doji, marking price uncertainty and the market's wait-and-see attitude. This technical pattern indicates an upcoming important turning point, making this week a critical period to determine the market's medium-term direction. If this week can show a positive close, it may indicate that the market is forming a bottom; conversely, if the close is poor, it may trigger a more drastic decline.
Weekly technical analysisAt the weekly level, the market showed strong signs of rebound last week and successfully returned to the Bollinger Band Indicator (BBI), thus providing the BBI with the power to attack upward. At the same time, the 30-week moving average (MA30) continues to maintain its upward trend, which further strengthens the upward momentum. This week's performance is crucial. If the market can maintain above the current level, it will be expected to confirm the stop of the decline and gradually stabilize. Otherwise, the market may need to prepare for greater challenges.
Market Outlook Therefore, this week's market performance will greatly affect the medium-term market trend. Pay close attention to market dynamics, especially important technical indicators on the weekly chart, in order to better understand the possible direction of the market and make corresponding strategy adjustments.
Bollinger Bands Analysis: Weekly Perspective
After last week’s V-shaped reversal, the market showed significant recovery momentum and successfully pulled the upper track of the Bollinger Bands back into the upward trend range. This action shows that although the upward angle of the upper rail is not steep, the market still maintains upward momentum.
Current strategy recommendations Given that the market has not yet entered a wide range of fluctuations, it is recommended to temporarily put short selling on hold. This strategy is based on the latest performance of the upper Bollinger Band and its implications for future market trends. It is recommended to maintain a wait-and-see attitude and pay close attention to further changes in the Bollinger Bands so that more accurate trading decisions can be made after market dynamics become clear.
Weekly Volume Analysis
VR and OBV indicators show that the volume trend this week shows that VR (volume ratio) continues to decline and has not yet shown obvious signs of stopping the decline. This shows that the market lacks momentum and it is necessary to wait until the end of this week to assess the market situation more clearly. At the same time, OBV (power tide indicator) has not shown a positive recovery in volume, which further emphasizes the uncertainty that may exist in the market.
Strategy Recommendation Given the continued decline in volume and the lack of positive reversal signals, if we fail to see an improvement in volume and an effective upward breakthrough in the market this week, it may mean that the market will continue to be under pressure. Pay close attention to changes in volume-related indicators as a key factor in judging potential changes in market trends.
Potential indicator analysis
RSI and MFI Observation This week's potential analysis shows that RSI (Relative Strength Index) and MFI (Money Flow Index) continue to move in a sideways range and have not yet shown a clear trend. This suggests that the market is in a state of balance.
CCI indicator and market strategy Combined with the data of CCI (Commodity Channel Index), the market is still moving in the long consolidation range. This indicates that after experiencing the bottom pattern, the market may enter a stage of divergence and distribution. At this stage, the market may show greater volatility and provide potential trading opportunities.
Comprehensive suggestions: Given that the current momentum indicators show that the market is still in the consolidation stage, it is recommended to continue to observe the changes in RSI, MFI and CCI to capture possible market turning points. Before a clear trend emerges, maintain a flexible strategy and be prepared to respond to possible market changes.
Ichimoku Kinko Hyo Analysis
Current judgment and future forecast Based on the analysis of Ichimoku Kinko Hyo, the market is expected to maintain the previous trend judgment. The current outlook indicates that although the market intends to expand the impact range of the cloud area, this behavior is not expected to happen until the fourth quarter of this year. Before that, the market may experience a wave of pull-ups and distributions to prepare for subsequent larger moves.
Q4 Outlook If the market performs poorly in the fourth quarter, it may cause prices to fall and touch or penetrate the current Ichimoku cloud, which will be an important technical signal that market sentiment and fundamental factors may be shifting.
The operation strategy should closely monitor the key indicators in the Ichimoku Kinko Hyo, such as the turning line, the base line, and the changes in the shape of the cloud area. Before approaching the fourth quarter, it is essential to stay alert to capture market turning points. During this period, the reasonable strategy is to wait and be ready to act quickly after confirming the trend.
Weekly Market Outlook
This week is considered a key turning point on the weekly chart, which will verify the validity of the market bottom. If the market price can stay above 62,000 points this week and does not fall below this key support level, it can be considered that the market has stopped falling, laying the foundation for future upward momentum.
Future Outlook If the decline is confirmed to have stopped this week, the market is expected to continue to stretch upward and achieve further gains. This will be an important verification of the strength of the market bottom and may guide market strategies and investment decisions in the coming weeks.
Pay close attention to the market performance this week, especially the performance of the key support level of 62,000 points, in order to adjust their market strategies and expectations. This week will be an important moment to determine whether the market can maintain stability in the short term and create conditions for further gains.
