Yesterday's close was above 975, which indicates that the bearish pressure has eased to some extent. Both bulls and bears are evenly matched. In terms of the naked K line, there is a significant lower shadow, proving the bulls' strength, with strong support below.
So, is the market confirming support and preparing to rise, consolidating and recovering, or gathering strength for a downturn? Let's take a look at the smaller timeframes.
Four-hour level:
The upper trend line is at 975, which is a key price. Once it stabilizes, the trend is likely to shift back to bullish. For short positions, observe the real market; if it stabilizes, be sure to withdraw.
How was the bottom of 922 confirmed? Look at the two charts below.
The first chart shows the extreme prices obtained by drawing a line on the Fibonacci four-hour chart. You can see that both 161.8 and 261.8 had certain support effects when they first appeared.
The second chart shows support near the midpoint price of the Kent channel on the daily chart around 922.
Technical indicators are like this: the more overlapping price levels, the better the effect, and the greater the market consensus. Yesterday, I was fixated on the support and resistance prices of the naked K line, thinking we needed to confirm price support near 908 again; it was like trying to catch a fish by carving a boat.
I personally suggest waiting for the market to move a bit before making any trades. Don't rush to open positions; if the key prices haven't been reached, just wait for right-side signals. Consider your direction only after confirming the support and resistance in certain areas. Additionally, weekends are generally focused on consolidation and recovery, so check back on Sunday night to see how things are developing before deciding whether to trade.
The morning trading thought analysis is complete. What do you all think? Feel free to exchange ideas in the comments. This is your little buddy who loves you, providing daily free analysis (heart emoji).