7.21 King’s Cake / Two-Cake Morning Analysis

Looking back at the overnight market movement, after King’s Cake tried to edge up toward the 65,700 prior high, it clearly encountered resistance overhead. It then came under pressure and pulled back. The current market has now retreated to the 65,200 area and is maintaining a narrow-range consolidation and sideways trading pattern there, as both bulls and bears recharge their momentum.

The current Bollinger Bands for King’s Cake are still overall sloping downward, which means that this rebound is, in essence, still a short-term correction driven by news rather than a solid trend reversal. From the perspective of market structure, the upper band and the prior swing high have already formed a clear “double top” resistance. In terms of the volume-price relationship, the market is showing characteristics of “rallies on expanding volume and pullbacks on contracting volume,” which indicates that the bulls’ follow-up momentum is still insufficient.

Trading suggestions:
King’s Cake: Buy near 65,000; defend 66,000; target around 64,500—64,000.
Two-Cake: Buy near 1,900; defend 1,930; target around 1,850-1,800 #