[The market still pays attention to the risk of correction, it’s time for copycats to run for their lives]
The current quotation of the market is 36,900+, with the highest hitting 38,000 this week. The futures fell quickly after 38,500, which is likely to be a false breakthrough. The current view remains the same as in the previous issue, and attention should be paid to the risk of a correction in the market. Figure 1, on the weekly line, it is still in the resistance trend line (black line) suppressed area, and the stochastic indicator overbought zone has downward risks. We can also see that after every new high in this round of big pie, there will be a pullback to the previous high, so pay attention to tomorrow's weekly closing situation. It is crucial to see whether the physical part of the weekly green column is strong or not. Looking at the 2-day line in Figure 2, it is currently suppressed by the upper Bollinger Band, and the Stochastic Strength Index is overbought. Every time there is a dead cross above, there is a high probability of falling back.
Based on the above analysis, the current position of the market is still cautious, and attention should be paid to the risk of a correction, especially for copycats, which have already surged. If there is a demand for a correction, you can wait for the correction to continue to intervene.
Operational suggestions: You can hold the long-term spot, and the market is expected to hit 40,000+. In the short-term, you can wait and see, waiting for opportunities for the market to pull back to the mid-range or the previous high of 32,000-33,000.
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