May 1 Market Analysis Key Points

1. After three consecutive daily declines, a rebound signal has appeared; yesterday's long upper shadow faced resistance and pulled back, and today’s rebound shows a second upward attempt is needed.

2. Daily trading volume has mildly increased with moderate overall size; if subsequent rebounds have weak volume, selling pressure remains strong, and the daily downtrend has not changed.

3. The small cycle has broken the previous high, with prices not making new lows and indicators making lows, forming a bullish divergence; contract shorts are crowded but the market cannot fall further, slowly rebounding.

4. During the consolidation phase, short positions continue to increase, with ample short-term chips accumulated, providing the fundamental power for a subsequent upward rebound.

5. The one-hour rebound target looks at the previous high range and gap fill; the ideal position is at the Fibonacci 0.786 retracement level.

6. Two main conditions for the rebound to succeed: daily rebound volume must be supported, and the order book must continuously accumulate short positions.

7. At the current position, chasing shorts is strictly prohibited; funding rates have turned negative, and resistance at the high points above still offers opportunities for repeated testing and breakthroughs.

8. Trading strategy: upon a rise to the upper resistance and previous high encountering resistance, re-enter short positions; set stop-loss above the resistance level.