The bearish dominant pattern has not yet reversed: Prices are currently close to the bottom support level, and the K-line continues to move slowly downward, indicating that buying pressure is weakening. If 105800 is breached, a rapid decline may ensue.
Limited rebound height: Even if a rebound occurs, it is very likely to be capped in the 107800-108500 range, as the strong selling pressure above this zone has yet to be cleared.
Strategy suggestions:
Conservative approach: Do not enter the market for now; wait for a break below 105800 before observing whether there is stronger support in the 102800-104000 range.
Aggressive approach: You can establish a light long position at 105800 to bet on a short rebound, with a strict stop loss set below 105500, targeting a rebound to 107500, and aim for quick entry and exit.
If a breakout above 108500 occurs with volume, consider taking a long position in line with the trend, targeting 109800-110200.
