Yesterday's closing was above 975, indicating that the bearish pressure has eased to some extent. Both bulls and bears are evenly matched. In terms of naked K, the increased lower shadows show that the bullish strength is strong, with solid support below.
So, is the market confirming support and preparing to rise, or is it consolidating and recovering, or is it gathering strength to fall? Let's take a look at the smaller time frames.
Four-hour level:
The upper trend line is at 975. This is a key price. Once it stabilizes, the likelihood of switching back to a bullish trend is very high. For short positions, monitor closely and withdraw once it stabilizes.
How is the bottom of 922 confirmed? Look at the two charts below.
The first chart shows the extreme price obtained by drawing a line with Fibonacci on a four-hour chart. You can see that both 161.8 and 261.8 provided some support when they first appeared.
The second chart shows support near the mid-price of the Keltner channel on the daily chart at 922.
Technical indicators work like this: the more overlapping price points, the better the effect. The greater the market consensus. Yesterday, I was fixated on the naked K's support and resistance prices, thinking it would go near 908 to confirm price support again, which is akin to trying to find a sword in a boat.
I personally suggest waiting for the market to move a bit before making any trades. Don’t rush into opening positions. If the key price hasn’t been confirmed yet, wait for right-side signals. Consider the direction only after confirming support and resistance in certain areas. Additionally, weekends generally focus on consolidation and recovery, so let’s see how it looks on Sunday night before considering anything.
The morning trading thought analysis is complete. What do you think, everyone? Feel free to discuss in the comments. This is your little white, providing free analysis daily (heart emoji).