The calm before the storm? $CATI saw a spike to 0.1532 in an instant, with the main force testing the daily Bollinger Band middle line at 0.1511 as a pressure point, but faced a quick sell-off from the bears, dropping back to the 0.1464 range. The current price is trapped in the narrow channel between the Bollinger Band middle line at 0.1511 and the lower line at 0.1405. Although the volume bars are increasing, they cannot break through key levels, which is a typical characteristic of main force control.
The daily Bollinger Band upper and lower lines are accelerating towards convergence, with volatility dropping to a year-low. This suffocating consolidation is often a precursor to a trend change. The core pressure above remains at 0.1511 middle line; if it breaks with volume, it could open up upward space; the lower support at 0.1405 was initially tested today but held, although the MACD’s dead cross below the zero line is widening, with bears still holding short-term dominance. Caution is advised as the main force has recently been frequently using V-shaped reversal tactics—after an early morning spike, they often pull back during Asian trading hours to flush out the bears. It is recommended to set strict limit orders at 0.1403 for longs and 0.1513 for shorts to guard against extreme spikes of 500 points within 15 seconds.
On the news front, attention is focused on the China-U.S. trade team negotiations in Switzerland. On-chain monitoring has detected whales continuously accumulating in the 0.143-0.146 range (up 2% from the Bollinger Band lower line at 0.1405). If this area is lost, it may trigger a waterfall of long liquidations. If it holds, it may form a head and shoulders bottom pattern on the hourly chart. Contract players should currently observe, as the Bollinger Band convergence combined with main force control makes manual operations prone to double-sided squeezes; patience is required to wait for a directional breakout before entering the market.
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