To be honest, real accumulation is often hidden behind a trap. This big-volume bullish candle ($HEMI ) pulled things up—my first reaction wasn’t to chase, but to look back at the four-hour chart: that long-legged doji. The shorts had smashed so deep, yet it recovered—that in itself shows the presence of strong absorption. The more synchronized the voices calling for shorts in the market are, the more it indicates that chips are being transferred from retail hands into the main force’s pockets. I’ve seen this kind of structure countless times. When watching the chart, we can’t only look at the surface K-lines—we must see whether the volume and momentum are supporting it.
This rebound isn’t a technical correction after a quiet, low-volume decline. It comes with clear turnover characteristics, indicating that funds are actively picking up shares at low levels. That prior-low area keeps being tested without breaking; the shorts keep pushing but can’t drive the price to a new low. Instead, the buy side holds it up. This is a typical “fake breakdown” short-trap. The more people who chase short positions, the more stop-loss orders stack up overhead. Once the rebound kicks in, those levels will all become fuel that boosts the move. I’m not saying it will turn into a one-way rally immediately, but at least the risk-reward ratio at this point has already tilted in favor of the bulls.
The resistance overhead isn’t far, but as long as the volume keeps coming in, a breakout is only a matter of time. Chasing shorts now is essentially handing initiative to someone else. We’d better wait for a pullback to confirm support and observe the bulls’ staying power. My feeling from the chart is that this rebound hasn’t finished yet—don’t rush to take the wrong side.
Gaze at the vastness of mountains and seas, and observe the market’s subtlety.
Walk with Uncle Xiong, and see the ebb and flow of gains and losses.
#HEMI
Click the button below to trade 👇
This rebound isn’t a technical correction after a quiet, low-volume decline. It comes with clear turnover characteristics, indicating that funds are actively picking up shares at low levels. That prior-low area keeps being tested without breaking; the shorts keep pushing but can’t drive the price to a new low. Instead, the buy side holds it up. This is a typical “fake breakdown” short-trap. The more people who chase short positions, the more stop-loss orders stack up overhead. Once the rebound kicks in, those levels will all become fuel that boosts the move. I’m not saying it will turn into a one-way rally immediately, but at least the risk-reward ratio at this point has already tilted in favor of the bulls.
The resistance overhead isn’t far, but as long as the volume keeps coming in, a breakout is only a matter of time. Chasing shorts now is essentially handing initiative to someone else. We’d better wait for a pullback to confirm support and observe the bulls’ staying power. My feeling from the chart is that this rebound hasn’t finished yet—don’t rush to take the wrong side.
Gaze at the vastness of mountains and seas, and observe the market’s subtlety.
Walk with Uncle Xiong, and see the ebb and flow of gains and losses.
#HEMI
Click the button below to trade 👇