The market will use candlestick charts to depict roller coaster-like scenarios, sometimes making you feel like touching the stars, and other times throwing you into the deep sea. But remember—true value has never been in the flickering numbers on the screen, but in how you perceive this game. The recent rebound from 74,500 lacked volume, faced resistance at 79,000~79,300, and failed to break through three times in a row, signaling a clear shift to clear out the bulls! After the US stock market opened with a decline, the big players took the opportunity to dump, breaking the support at 73,332. The big players will re-enter at lower levels!

From the current market pattern, the weak market characteristics are further highlighted. On the four-hour chart, the rebound to the middle band of the Bollinger Bands was met with resistance, followed by a continued downtrend; the three Bollinger Bands are narrowing downward simultaneously, indicating shrinking volatility and ongoing selling pressure. The KDJ indicator formed a death cross after the rebound lost momentum, suggesting that the short-term rebound is merely a technical correction within a bearish pattern. The one-hour trend further confirms the bearish structure: after a brief rebound, the price quickly broke below the middle Bollinger Band, which continues to move downward, forming a clear resistance level. Meanwhile, the MACD lines, after converging, diverge downward to form a death cross, indicating that the bearish momentum is gradually releasing.

Considering the performance of indicators across various timeframes, the market’s rebound momentum continues to weaken, and the overall technical structure leans toward bearish. During early hours, it is still recommended to focus on short positions, looking for resistance areas during rebounds to establish short entries. Pay attention to position control and closely monitor support levels below. The overall market sentiment remains defensive, and it’s too early to judge a bottom signal.

Trading suggestions:

Short around 74,000, target 71,000
Short around 2,160, target 2,300