Evening Analysis of the Second Cake Market on July 18
Today, the second cake faced significant pressure near 3670, entering a high-level consolidation and pullback phase. From the hourly chart perspective, although the current market is in a consolidation state, the support level below is slowly moving upwards, and the upper space has gradually opened up after the previous breakout. The overall structure still leans towards strength, and the price is expected to restart the rebound rhythm after confirming support.
Short-term pullbacks do not indicate a trend reversal, so do not blindly chase shorts; the strategy should focus on establishing long positions at low levels:
It is recommended to gradually set up long positions in the 3590—3620 range, targeting 3750, and if broken, further looking towards 3800, with a stop loss set at 3560 (30 points stop loss).
Lightly test short positions in the range of 3750—3780, targeting down to 3500, with a stop loss set at 3810 (30 points stop loss).