April 20th Midday Trading Strategy

After a strong rally earlier, the highest point reached was 78,271, then it turned around and started to decline all the way back. Currently, it has fallen back to around 74,400, dropping nearly 4,000 points from the high, indicating a clear pullback after the surge and a state of exhaustion among the bulls.

The overall sentiment now is a correction after a sharp rise. Currently, it’s in a weak consolidation phase, with the bulls completely confused. The rebounds are weak, and it’s easy to be suppressed again.

The likely resistance levels above are: 75,000 and 76,000. As long as it cannot hold above 75,000, it’s difficult to regain strength. Any upward attempt to test resistance will likely encounter obstacles and pull back.

Support levels below are: 74,000, then further down are 73,000 and the strong support zone around 71,000 from earlier.

At this position, signals for stopping the decline and stabilizing have not yet appeared. Don’t rush to buy the dip and catch falling knives. It’s likely to grind sideways or even test lower levels again. Today, it’s probable to fluctuate within the 73,000 - 76,000 range.

This is not a period of a one-sided big rise or fall, but a correction phase after a high-level pullback. Both bulls and bears find it hard to operate. Chasing highs will lead to losses, and blindly buying the dip can also result in being trapped. It’s better to wait and see for stabilization, a golden cross of indicators, or a series of consecutive bullish candles signaling a bottom, which will be much safer.

Extreme rebound resistance: 77,200 - 77,800
The ultimate resistance zone for this decline’s rebound is an excellent position for heavy short positions to deploy.