Yesterday's market review
Yesterday, the NIL price showed a general weak downward trend. The 4H K-line indicates that the market opened around 0.73, rebounded to a maximum of 0.81, but then faced downward pressure, hitting a low of 0.66, and finally closed at 0.70. The daily amplitude reached 19.40%, closing with a large bearish candle, clearly indicating a market dominated by bears.
2. Current market structure analysis
Technical indicators
Moving average system (MA7): Currently at 0.71, with prices still below it, indicating a short-term bearish trend.
Bollinger Bands (BOLL): Prices are near the lower Bollinger band, short-term pullback or repair may occur, but there is significant pressure above.
RSI (Relative Strength Index): The RSI is in a weak area and has not yet shown oversold rebound signals.
Trading volume: Yesterday, the intraday volume decreased sharply, indicating that the bearish forces are still strong, with insufficient momentum for a short-term rebound.
Support and resistance levels
First support level: 0.68 (200 points above yesterday's low)
Second support level: 0.66 (lowest point yesterday)
First resistance level: 0.73 (yesterday's central area)
Second resistance level: 0.75 (upper boundary of the previous consolidation range)
3. Today's operational strategy
Short selling strategy (main idea)
Entry point: Short in the range of 0.718-0.73
First take-profit level: 0.70 (short-term pullback target)
Second take-profit level: 0.68 (200 points above yesterday's low)
Stop loss level: Above 0.74 (break above yesterday's consolidation range)
4. Market summary
Overall trend: Bears dominate, yesterday closed with a large bearish candle. Short-term market sentiment remains cautious, expecting limited rebounds today, still primarily in a downward consolidation.
Operational suggestion: Primarily short on rallies, set up short positions in the 0.718-0.73 range, with a target of 0.70-0.68. If there is an unexpected rebound that breaks 0.73, then cautious strategy adjustments are needed.
Key levels to watch: 0.73 as an important bearish defense level. If it holds, it may strengthen in the short term; 0.6800 as important support. If it breaks, it may test the low of 0.66.
