Last Friday, two points were mentioned: 1: The previous drop near the needle at 114000 has great attraction, and the price is likely to test this level (already verified). 2: If the price tests and stabilizes at this level, it will continue to fill the previous daily gap in the 116000-119000 range (currently in progress) and there is a strong feeling that a strong upward K will appear soon, just did not expect it to complete the surge on Sunday. The weekly double bottom structure will continue to extend a surge at the beginning of this week.
On the daily chart, the gap from the previous sharp drop is at 116000-119000, and this week is expected to continue to rise and fill this level. The most critical resistance level during this surge is around 117000. If this level is reached and a small-scale weak structure appears, plus the daily Bollinger Bands are in a contracting state, one can attempt to make short trades in segments, with specific situations to be analyzed in detail later.
Since the market still has upward space, consider only buying on pullbacks in the near term. The first support is the weekly middle track at 113800, where one can continue to buy and look for upward targets. The short-term resistance is near the previous natural rebound high at 116000, pay attention to the market reaction at this level to consider whether to reduce positions. If there is a strong breakthrough, look directly to the 117000-118000 area, at which point definitely reduce positions, as there may even be a reversal risk.
The small scale is very obvious, with a very good bullish market framework, with steadily rising highs and lows. The key short-term level is around 113000; as long as the price stays above this level, it is a strong upward pattern. If this level is breached, it will turn into a consolidation, but it does not necessarily mean a reversal structure. Currently, no obvious pullback signals are seen, so trading will only consider buying until weakness appears.
In summary, this week continues to look bullish towards the 116000-119000 range, with the key resistance above at 117000-118000. This is the point to reduce positions or liquidate, and it is a potential reversal point. Pay attention to the market structure at this level before making decisions. Recently, continue to hold a bullish outlook and buy on dips, with short-term support near 114000 where one can directly enter, targeting the 116000-117000 area