Early Morning Direction: Cautiously go short. Core logic: Although multiple oscillation indicators (RSI, KDJ) show oversold conditions, suggesting a short-term rebound, trend indicators (MA, MACD, BOLL) all clearly point to a bearish trend and are resonating. The volume-price relationship (increased volume on decline) and capital flow (continued large net outflow of contract funds) strongly support the continuation of the downward trend. The current price is near the intraday low and has broken below key moving averages and the lower Bollinger Band, indicating a complete bearish structure. If a rebound occurs, it is more likely to become a new shorting opportunity rather than a reversal point.

Entry Timing: Aggressive strategy: Lightly short in the current price range of 75,350-75,500, betting on the price continuing downward along the lower Bollinger Band. Conservative strategy: Wait for the price to rebound to around MA5 (~75,940) or the middle Bollinger Band (~76,725). If the rebound shows weakness (such as small-bodied candles, upper shadows) or volume diminishes, it is a better entry point for shorting.
Stop Loss Setting: If entering at 75,350-75,500, set the stop loss above the R1 resistance level at 76,995, about 2.2%. If entering in the 75,940-76,725 range, set the stop loss above the R2 resistance at 78,630 or above MA20, about 3%-4%. Combining ATR (509.9), the stop loss range can be set at 1.5-2 times ATR, approximately 765-1020 points, which aligns with the key resistance levels mentioned.
Target Price: First target: around S1 support at 74,300, potential profit of about 1.4%. Second target: around S2 support at 73,235, potential profit of about 2.8%. If the price breaks below S2, look toward S3 support at 71,600, with a potential profit of about 5%. Note: Since the current price is close to S1, the first target space is limited. Traders should evaluate risk-reward ratio. To pursue at least 5% potential profit, the price must effectively break below S1 and test S2/S3 downward. Otherwise, reduce position size or stay on the sidelines.
Reminder: This analysis is for reference only and does not constitute any investment advice! Market volatility is intense; please strictly control position size and risk.