Recently focusing on the trend of $MERL , I sincerely feel that the position of 0.5U is a major threshold. In the past few weeks, the main force has tested this area three times, and each time it has been pushed down, giving the bulls no chance at all.

If you look closely at the K-line, you will find that every time the price approaches 0.5U, the trading volume increases, but the price just can't go up. What does this indicate? It actually means that the more the bulls buy, the more the main force sells off, and this is completely their selling zone.

The overall market is currently in a pullback, and the confidence of the bulls has already dissipated. Weak coins like MERL tend to drop faster than others in such an environment. If you are still thinking about going long at this position, you are actually giving money to the operators. The structure has been completely damaged, and once it breaks the support level, the space could be very large.

Therefore, looking at this market now, a rebound is actually an opportunity to short. The market trend tells us that looking downward is the key, with opportunities and risks both present. Overall, 0.5U is not a resistance, but rather the 'high point' for the operators, so everyone should be clear before taking action.

#MERL #Short #MarketAnalysis