Today, the market continues its downward trend, and the weak performance during the trading hours has made investors cautiously observe. In the early trading session, the market briefly showed signs of stabilization, giving some investors who anticipated a rebound a glimmer of hope. However, this hope was short-lived as the bearish forces intensified in the afternoon, leading to a ladder-like decline in the index, and the evident lack of rebound momentum made the downtrend increasingly apparent. In such a market environment, the previously formulated short-term trading strategy has demonstrated its effectiveness. When the anticipated rebound did not materialize, decisive profit-taking actions were executed, successfully achieving a steady small profit. This operation not only reflects the rationality of strategy formulation but also highlights the importance of being flexible and timely in stopping losses and taking profits in a complex and ever-changing market.
From the 4-hour chart level, technical analysis can provide clearer insights into market trends. During the Asian trading session, prices once dipped and touched the middle Bollinger Band support level, and although a technical rebound was initiated, the strength was weak. When prices approached the middle band, they encountered strong resistance, indicating that the middle Bollinger Band is exerting a strong suppressive effect on current prices. If prices effectively break below the middle band support, based on the operational rules of the Bollinger Band indicator, the next target will likely be near the lower Bollinger Band. Looking at the candlestick pattern, it currently shows a clear 'cloud cover' formation. In candlestick technical analysis, the 'cloud cover' pattern is an important top signal, suggesting that the market trend may shift from bullish to bearish. The emergence of this pattern further corroborates the strength of the current bearish forces in the market. Meanwhile, the MACD indicator continues to expand below the zero axis, with fast and slow lines in a bearish arrangement, and green energy bars continually growing, indicating that the bearish momentum in the market is still being released, with mid to short-term stock prices in a clear bearish trend.
Considering the above market trends and technical analysis, the evening market is likely to continue the current downward trend. For investors, maintaining a bearish outlook in the current market environment is a wise choice. In terms of operations, it is recommended to focus on shorting during rebounds. However, it is important to note that market conditions can change rapidly, and investors must strictly set stop-loss and take-profit levels when trading, control their positions, and guard against potential market risks, all while ensuring the safety of their funds and seizing market opportunities.