Today's position analysis: $IO
From the daily level, after breaking through the Fibonacci 0.236 position of 1.73, IO fell back to the Fibonacci 0.236 position after encountering strong resistance from 1.91-1.96, and is currently fluctuating around the 1.475-1.91 range. And in this oscillation range, we can see many K-lines with long upper shadows, which, combined with the trading volume, shows that the short-selling force is strong, and people are constantly doing rebound short strategies, waiting for IO to be able to conduct a second test. From the perspective of the RSI relative strength index, it is above the moving average and below the middle track, indicating that the short-selling force is dominant, but the long-selling force is also gradually increasing.
From the four-hour technical pattern, IOI formed a breakthrough pattern of a converging triangle, but it was also pulled back after being blocked by the strong resistance of 1.91-1.96, and it was blocked for the third time. At present, the K-line rebounded effectively after stepping back on the upper track of the converging triangle, but the rebound force was weak. If the subsequent trend does not effectively break through the supply range of 1.91-1.96, this breakthrough can be regarded as a false breakthrough. The price will have inertia and fall below the lower track of the converging triangle to test the previous low.
At present, the market is still dominated by short forces, and considering that the price has failed to break through the resistance range for three consecutive times, the bullish force has been exhausted. The profit and loss ratio of our short orders at this position is higher. If we see a breakthrough in the price later, we will make long orders based on the LPS signal after the price breakthrough or the retracement.
Short selling: 1.75-1.77
Take profit: 1.64, 1.56, 1.48
Stop loss: 1.8
