After a significant pullback, it is usually accompanied by a rebound market, at which point the cost-effectiveness of going long is better than chasing a short. From the analysis of the technical pattern at the 1-hour level, the initial rebound momentum after this round of decline is limited. After the price touches the small resistance line above, it is highly likely to retrace. The anticipated entry point for going long is in the range of 103000-103400.
This range conforms to the characteristics of a secondary bottoming at the 1-hour level and is a typical position for a small investment expecting a large return:
Stop loss setting: exit if the recent low point is breached Target price: Fibonacci 1.618 retracement line corresponds to around 105800
Using a stop loss of hundreds of points to aim for thousands of points in profit space, the risk-reward ratio is significantly advantageous.
