The price has dropped from a high point and has fallen below the middle support line, indicating that the buying power is weakening, and the selling power is starting to gain the upper hand. The price is now close to the lower support line, which may provide some support here. However, overall, the channel of price fluctuations is widening, meaning that the amplitude of price changes may increase in the future.
A "death cross" has appeared in the technical indicators, which is usually a signal for the beginning of a downtrend. The green bars representing the strength of the decline are still getting longer, indicating that the downward momentum has not yet stopped. Without particularly good news to stimulate the market, it is difficult for the selling power to disappear in the short term.
On the daily chart, it can be seen that the price once surged but was suppressed, leaving a long upper shadow, indicating that the buying force failed to push the price higher, and the selling force began to counterattack. The subsequent bearish candle bodies are getting larger, completely overshadowing the previous bullish candle, clearly indicating that the sellers have overwhelmed the buyers and taken control of the market.
Looking at the four-hour chart, several large bearish candles have appeared consecutively, and these bearish candle bodies are very long, with short lower wicks (shadows). Short lower wicks indicate that the buying power below during the decline is weak and offers little resistance. This pattern of large bearish candles falling one after another indicates that the selling power is both strong and persistent, with prices continually declining under the pressure of the sellers, and there are no signs of a trend reversal in the short term.
Operation Suggestion
For the first contract, trade around 104500-105000, with a target around 103000-102000.
For the second contract, trade around 2500-2530, with a target around 2440-2420.
