6.1 Big Cake Thinking
Looking at this wave of market, after the breakout of that big bullish candle on the weekly chart, it is now starting to pull back. The first pullback after such a sharp rise is often not very gentle. I remember similar trends appeared in January 2023 and November 2020, with pullback ranges generally around 15%-20%.
The daily chart is even more obvious, the moving averages are too far apart, and the price is too far from the EMA20, it surely needs to come back to find support. Now the MACD has already formed a death cross, and the trading volume is also shrinking, each rebound seems very weak. Key positions to watch:
The upper level of 105000 has now become a resistance level.
The lower level of 100000 is a psychological barrier; if it breaks, it is very likely to go to 98000.