Tuesday

Yesterday I shorted around 67,900, and now I’m caught again. However, I don’t plan to hold this position for too long. Currently, the stop loss is set at 69,500. If it breaks the previous high on the daily close, I will prepare to stop out.

Yesterday was Monday, and the market rebounded with volatility throughout the day. The gains offset the two days of decline over the weekend. Based on this pattern, there’s a high probability that the rebound will continue today. According to the flag pattern adjustment structure, it’s very likely to reach above 74,500 to test the top resistance of the flag pattern. In this situation, holding on and adding to the position forcibly might be somewhat unwise.

In a bearish trend, the priority is to avoid going long as much as possible. So today’s focus is on the 69,500 level. This level also coincides with the upper band of the four-hour Bollinger Bands, acting as a resistance. If there are signs of a breakout, consider taking profits at the high points and going short.