The weekend consolidation has ended, and the monthly candlestick will change in two days. We need to pay special attention to potential changes in the market over the next couple of days. Let’s systematically review the price action of naked candles across various time frames to identify potential directional signals.
First, let’s look at the monthly chart:
Although the closing line hasn’t formed yet, let’s make a hypothetical closing assumption: the body closes below a large bullish candle, with a long upper shadow and significant selling pressure above. This indicates that at least the upward momentum is being suppressed. Now, will we see consolidation or a downturn? Let’s take a look at the weekly chart:
We can see that around 90,000 to 92,000 is an important support level. The MACD is still declining, which is quite dangerous. Combined with the monthly chart, we must not break 90,000; if we do, it may trigger a large-scale correction. The short-term support below is at 85,000, with an extreme level at 73,800, which is quite far away.
Let's look for trading opportunities at a smaller time frame, starting with the daily chart:
For friends near 996 without short positions, don’t rush to open a short. Wait for a breakout before entering; it's safer that way. Those who are trapped in long positions should set a stop loss at 90,000. This level must not be broken. Even if you have to cut losses, it's better than facing liquidation.
After multiple tests confirming resistance near 902, consider a short-term long position with a stop loss of 300 points, or observe the market for a breakdown and chase a short.
Let's take a look at the 1-hour chart to see how the market is performing now.
The pressure has now reached 937 to 940. If it can't break through, we have to continue downward. The key support is at 932; once it is broken, we are likely to see 922. If you are eager to short, set your stop loss at 944.
Let’s wait a bit near 902 for the long positions.
Morning trading analysis is complete. What does everyone think? Feel free to discuss and exchange ideas in the comments. Here is your little white who loves you, providing daily free analysis (heart emoji).
