Current main tone: stay patient and watch, waiting for signals


The downside potential of a head-and-shoulders top has basically been digested. We are currently near a critical support level. Neither the stop-loss-to-entry open range nor the take-profit space is clear, and the risk-reward ratio is not good. Priority is to wait for a clear directional signal—don’t short into weakness, and don’t try to bottom too early.
Bear follow-up conditions
If the price retests and, after dropping back below the broken trendline, confirms that it cannot effectively reclaim it, you can follow the move and take short positions on a short-term basis. If the price effectively breaks the 1800 support, and the bearish trend continues, you can keep looking for shorts.
Bull reversal conditions
Wait for the price to form a clear reversal pattern and show stabilization around the key support level. After a strong bullish candle that reclaims the area near 1900 appears, consider setting up a reversal long position. Do not enter early before the signal shows up.
Core view
The large-scale bullish trend has not been fully reversed yet, but bearish momentum dominates in the short term. We are currently in a vague transition zone between trends. In terms of execution, follow the trend: first observe and wait for an effective breakdown in the 1800-1900 range, or only act after a clear reversal signal appears and then follow through.
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