Recent market technical analysis indicates that after a rapid price increase, it has entered a correction phase. Although the moving average system remains in a bullish arrangement, the short-term moving averages are flattening or declining, showing a decline in upward momentum.
A high-level stagnation pattern is apparent, and potential reversal patterns such as head and shoulders and descending triangles need to be closely monitored.
Technical Indicator Analysis
K-line patterns: Head and shoulders, descending triangles, and doji patterns are frequently observed, releasing trend reversal or downward signals.
EMA indicator: EMA12 and EMA26 are in a downward trend, with short-term bearish momentum prevailing, and price is pressured near EMA60.
BOLL indicator: The upper band is slowly converging downward, while the lower band is also narrowing, reducing volatility, with prices approaching or breaking through the middle band, showing a fluctuating downward rhythm.
MA indicator: Short-term moving averages (MA5, MA15) and medium-term moving averages (MA30) are converging, intensifying short-term selling pressure, but prices are still above the long-term moving averages (MA60, MA90), suggesting a phase adjustment within an upward trend.
Pattern breakout: The trend line of the triangular consolidation range has been broken, and the pattern is leaning bearish.
Key Levels and Trend Outlook Short-term support: 2425, 2380 (4-hour level support around 2380, with this level's signal currently showing bullish). Resistance level: 2520.
Conclusion: The market is overall in a correction cycle, and it is necessary to be cautious of the downward risk after confirming reversal patterns, with short-term attention on the effectiveness of support levels and breakout situations at resistance levels.
