SOL12.22 Market Strategy

On December 21, the overall volatility of SOL was relatively small, fluctuating within about 4 points. Currently, after failing to break the resistance at 128.6, there is a trend of retracement.

Technical Analysis

The 4-hour Bollinger Bands are narrowing, with the middle line trending upwards. The corresponding prices for the three lines are: 128.6-125.2-121.8. The market is rising, and it is attempting to break through the upper Bollinger Band line, but has not touched it, leading to a retracement and consolidation. The MA moving averages currently show a short-term upward trend for ma5 and ma10, while ma30 is trending downwards. The MACD indicator is moving upwards with both lines below the zero axis, indicating gradually increasing bullish momentum. On the hourly chart, both lines are also moving upwards above the zero axis, with bullish momentum gradually strengthening.

The RSI indicator on the 4-hour chart is moving upwards in the normal trading area, with corresponding values of 79 and 51 for both lines. The hourly chart is in the oversold trading phase, with both lines moving upwards, corresponding to values of 100 and 91. Be aware that market greed may continue to drive prices higher.

Resistance above: 128.5, 132, 134.8

Support below: 125.2, 123.3, 121.8

Low Long Strategy: Establish a primary position if it does not fall below 125.2, add positions at 123.3, stop loss is self-managed.

First Take Profit: 128.5

Second Take Profit: 132

High Short Strategy: Establish a short position if it does not stabilize above 128.5, add positions at 132, stop loss is self-managed.

First Take Profit: 125.2

Second Take Profit: 123.3