February 20 Early Morning Thoughts

The midnight market overall presents a weak oscillating pattern. Although there was a brief surge during the U.S. market session, the accompanying volume was clearly insufficient, and this impulse-like upward movement can be seen as a trap for longs. From a technical perspective, the 97000 integer level has formed a pivotal point between bulls and bears. Before the price can establish an effective breakthrough at the daily level, it is recommended to maintain a high short operation strategy. It is especially important to note that the current market is in a tug-of-war phase between bulls and bears, and two core points must be grasped during trading: first, accurately control key resistance/support levels (with a focus on the 95400-97300 oscillation range), and second, strictly implement a dynamic profit-taking strategy. In a market with narrowing volatility, taking partial profits is often more in line with capital management principles than pursuing maximum profit.

From the current hourly level, a weak rebound structure is maintained, and the 96000 level needs to be closely monitored for volume-price matching. The four-hour chart shows that the price continues to operate within the 95300-97300 box oscillation range. Although there was a brief breakdown during the day, it was quickly repaired, forming a long lower shadow, indicating that the support from below still exists. The suggested trading strategy is to adopt a right-side trading method, waiting for the MACD indicator to show a peak divergence signal or for the RSI to turn around in the overbought area, then look for opportunities to set up short positions above 96800. Special attention should be paid to changes in volume during the U.S. market session. When the rebound momentum weakens along with shrinking trading volume, it often forms a better entry timing.

Trading Suggestions

Position in the first contract around 96300-96700, target at 95200.

Position in the second contract around 2720-2740, target at 2650.