Brothers, INJ is really making a strong move this time! Climbing out of the deep pit at $5.029, it has been overcoming obstacles all the way, and it looks like it is about to rush to the key city gate at $5.352. This is not a rebound; it’s simply a rapid rise, increasing over 13% in a short time!
But friends familiar with the market understand that the more it is like this, the calmer one should be. $5.352 is not an ordinary resistance level; it is the 'ceiling' of this rising channel and a crossroads that determines whether to continue charging ahead or take a breather.
Current situation: both bulls and bears have stories to tell.
Bulls believe that the trend has formed, with both volume and price rising together. A breakthrough is a move in the direction of the trend.
Short sellers believe that the continuous rise has accumulated a large amount of profit, reaching a strong resistance level, and a technical pullback is reasonable.
Both of these scenarios may play out in the market. For us, the key is not to bet on the direction, but to be prepared for a response.
Key positions and response strategies
The signals the market gives us are very clear, there are two positions that need to be closely monitored:
1. Upper resistance area: near $5.352
This is the upper edge of the recent rebound channel, like a steep slope just before reaching the mountain top. If the price arrives here but shows weakness, a pullback may occur.
Strategy idea: consider lightly testing short positions in this area, with a stop loss set just above at $5.418. If the pullback is confirmed, the initial target looks towards $5.309, with stronger support at $5.239.
2. Lower core support: near $5.239
This position is crucial; it is not only the golden ratio of the pullback from this rise but also the support converted after the previous resistance breakout, belonging to a key node of 'support-resistance exchange'.
Strategy idea: if the price pulls back to this area and gains support, it will be a good opportunity to enter long positions. A stop loss can be set below $5.201, with the target looking at the price testing $5.282 and $5.308 again.
To summarize
In simple terms, INJ is currently at a critical decision-making period after a strong rebound. $5.352 is the rallying call, and $5.239 is the rear fortress. Next, it will either break through directly to open up new space, or pull back to consolidate before heading out again; the market will soon provide an answer.
Our task is: not to blindly chase highs, to be prepared with two options at key positions, and to set a clear defensive line. No matter which path the market chooses, we have a plan to respond.
