In-depth analysis of the big pancake market trend on the evening of January 27, 2025
In fact, if it weren't for the mild fluctuations in the market during the weekends, this round of decline should have started last Friday. The delay of 2 days before the drop has intensified the accumulated emotions in the market, thus increasing the determination to fall further.
We have previously discussed the range of market fluctuations: 100,000 to 108,000,
Today, it was pierced downwards, indicating the strength of the bears. Such an important support level was broken so easily.
However, after the breakdown, the market did not fall too deep, mainly because the starting point of this wave was too high: 105,000. In the absence of significant negative news, relying solely on emotions to drop this much is already enough, so the current market is caught in a short-term adjustment, and the adjustment price level is quite intriguing: just below 99,500.
We have mentioned that breaking below 99,500 represents opening up the space for further declines, with the trend continuing to look weak. Therefore, there are two possible ways for the market to move next:
1. Consolidate around 99,500; as long as it cannot effectively stand above 99,500, we will continue to be bearish and expect further declines tomorrow;
2. The market may rebound tonight, but as long as the rebound height does not exceed 102,000, it will be judged as a weak rebound, and we will still continue to expect declines tomorrow;
Only if the rebound stands above 102,000 can we consider being bullish in the future.
