Recent trends show clear signs of a top. After two consecutive days of highs forming a 'double top' pattern, prices fell back after reaching a high of 110600 yesterday, and today quickly declined after another rise to 110300, indicating heavy selling pressure above. Current prices are oscillating around 109300, with the key support level at 109000 being tested multiple times. If it fails to stabilize effectively, losing this support level will open up a new round of downward space.
From the moving average system, the short-term 5-day moving average has crossed below the 10-day moving average, forming a death cross, indicating an initial trend of bearish arrangement, further confirming the weakening of the short-term trend. Meanwhile, the MACD indicator has shown a death cross above the zero axis, with green bars continuously expanding, indicating a depletion of bullish momentum in the market, while bearish forces are becoming dominant.
In addition, in terms of volume, both times of price increase showed a divergence between volume and price, meaning that while prices reached new highs, trading volume failed to increase in sync, indicating insufficient market enthusiasm for buying at higher prices, with clear signs of capital outflow. In summary, if the price cannot recover the critical level of 109000 in the short term, it is likely to continue a correction trend. One could short around 1098000-110300, paying attention to important support levels like 108000 and 107500 below. It is recommended to sell on rallies, strictly set stop losses, and avoid potential downward risks.
