8.18 Afternoon Analysis
Reviewing the morning, the index showed a clear downward trend, continuously retreating from the 118000 level after being pressured, with a lowest point touching 114900 before entering a short-term consolidation phase.
From the hourly Bollinger Bands perspective, the band is widening like a trumpet, and the volatility is significantly increasing, indicating that the market's short-term volatility is expanding, with trading sentiment heating up. Combined with the direction of the index, the upward momentum is dominating.
The middle band and lower band have a steep downward slope, indicating a clear downward trend. The index has continuously broken below the lower band, and although it found support at the 114900 level and entered consolidation, the continuous breaking of the lower band usually signifies strong downward momentum.
Therefore, one can wait for a second test to re-enter the market.
The index can be traded around the 116000-116500 range.
The target can be seen at the 114800-114200 range.
Once reached, one can reverse their position.
The secondary index can be traded around the 4470-4520 range.
The target can be seen at the 4280-4240 range.
