We have always talked about the bearish market in the context of a long cycle, where this wave has moved in a five-wave downward structure. The day before yesterday, we also mentioned that the overall market is currently at the final stage of a four-wave rebound in a five-wave downward sequence, with the last wave presenting an opportunity to short in the range of 70s, preparing for the final stage of a new round of massive decline.
Without considering the long cycle, if we look at this structure separately, it also belongs to a bearish flag pattern, which is currently slowly approaching its end and nearing the upper trend line resistance of the long cycle. Various signs indicate that the bulls' last struggle may not last much longer.
So currently, let's look at the four-hour chart. The day before yesterday, we provided a very standard position at 69000 and 71500. The chart is currently marked in the green zone, and the view remains: if it breaks above and stabilizes at 71500, then look up to 74000. If 74000 can stabilize, it is very likely that there will be a false breakout to entice more buying up to 76000-77000. If it falls below 69000, then watch for lower support, as the fifth wave crash may arrive earlier.
In summary, the operation suggests that under the bear market background, we have primarily focused on shorting at high positions, and those who are paying attention should know this. For medium to long-term contracts, if you are not on the train, you can use low leverage and control the position ratio in three parts. Currently, near 71500, you can short one contract (to avoid being caught in a sudden crash without being on the bearish side), the second position near 74000, and the last position at 76000-77000. For short-term contracts: wait for the direction to be chosen at the positions of 69000 and 71500 first, while spot trading should continue to wait. Click to enter the Royal Research Institute chat room
