1.7 Morning Thought Analysis

The arc bottom construction appears to be taking shape, and the consecutive bullish candles have also ignited bullish sentiment. But remember—how was the price previously driven sharply higher, and how did it encounter heavy selling pressure in the early morning? This kind of oscillation is typical of a shakeout phase, and the process is not gentle.

In the early session, the price tested the strong resistance zone around 93,500 again. Multiple historical attempts to break higher and then fall back have proven that this level is a valid resistance. The current technical structure remains pessimistic: short-term moving averages are dead-crossing, suppressing the rebound space; the upward movement lacks volume support, showing a clear divergence between price and volume; plus, a large amount of profit-taking chips are accumulated at high levels, making market sentiment fragile and easily triggering a sell-off.

Overall, the current rebound is more likely to be a window for the bears to accumulate strength rather than the start of a trend reversal. Before new funds clearly enter, staying cautious is far more important than following market sentiment.

Trading Suggestions
Short at around 92,900-93,500 on the rebound, with targets down to 91,500-91,000; if broken, continue to look at 90,000.