Wednesday, March 25 — Morning Analysis by Yifan

Short-term bearish sentiment continues to dominate. Current rallies are merely technical corrections within the downtrend, and the market has yet to display clear reversal signals. The downtrend structure remains intact. Since retreating from highs, prices have continued to weaken, with the moving average system fully diverging downward and exerting pressure. Bearish momentum intensifies, with multiple rally attempts blocked at key resistance levels, and upside momentum completely exhausted. On the 4-hour timeframe, price action is confined within a clear downtrend channel, consistently suppressed by the moving average system. Rally strength remains weak, with quick pullbacks upon touching resistance, exhibiting typical bull-trap characteristics. Regarding volume, declining phases show significantly expanded trading volume, while rally phases display obvious volume contraction, lacking follow-through fund support. The sustainability of rebounds is questionable, and the bearish trend is expected to persist.

Operationally, stage short positions can be established as price rallies toward the 71800-72500 range. First target level: around 70500. Second target level: 69300.