To be honest, the reverse window is narrowing. That bearish candle—$MAGMA —comes crashing down. The feel of the board isn’t a normal pullback at all; it’s as if funds are actively withdrawing. We’ve been watching this structure for two days. Volume never shows any effective expansion. Every time it bounces, it keeps getting capped below the same zone of suppression. This kind of price action is the most frustrating—you think it’s trying to form a base, but actually it’s gathering power for the next leg down. On the four-hour timeframe, the focus has clearly shifted downward. After the moving averages start to stick together, they begin to turn—this is not a good sign. What we fear most in analysis isn’t just falling; it’s slow, grinding declines with contracting volume, because that suggests the bulls have no intention to resist.
Today’s selloff looks scary in terms of amplitude, but the real key is whether it can quickly recapture lost ground afterward. If the rebound force is weak, the prior swing low will most likely not hold; then you’re looking at a drop of 20 points or even deeper. Someone might ask: since it’s fallen so much, shouldn’t we bet on a rebound? My view is that the risk-reward of catching a falling knife against the trend is simply too poor. Right now the overall market structure favors the bears: rebound highs are getting lower, and lows are making new lows. In a descending channel like this, it’s far more comfortable to follow the trend than to guess the bottom.
After our internal discussion, we’re in agreement that this selloff looks more like the main force’s active shakeout. The purpose is to shake out the uncommitted shares and make room for the next phase of the market. So our stance is very clear: for the short term, we continue to look bearish on $MAGMA . Any rebound that moves into a key resistance area, in our eyes, is an opportunity to reduce positions or stay on the sidelines—not a reason to enter. Wait until it truly releases a stop-loss signal—like drawing back with increased volume above a key moving average—then we can reassess without being too late. The market always has opportunities, but the prerequisite is that you must survive until the opportunity appears.
Wide as the mountains and sea; observe the subtlety of the market.
Walking with Uncle Xiong, witnessing the ups and downs of profit and loss under the sky.
#MAGMA
Click the button below to trade 👇
Today’s selloff looks scary in terms of amplitude, but the real key is whether it can quickly recapture lost ground afterward. If the rebound force is weak, the prior swing low will most likely not hold; then you’re looking at a drop of 20 points or even deeper. Someone might ask: since it’s fallen so much, shouldn’t we bet on a rebound? My view is that the risk-reward of catching a falling knife against the trend is simply too poor. Right now the overall market structure favors the bears: rebound highs are getting lower, and lows are making new lows. In a descending channel like this, it’s far more comfortable to follow the trend than to guess the bottom.
After our internal discussion, we’re in agreement that this selloff looks more like the main force’s active shakeout. The purpose is to shake out the uncommitted shares and make room for the next phase of the market. So our stance is very clear: for the short term, we continue to look bearish on $MAGMA . Any rebound that moves into a key resistance area, in our eyes, is an opportunity to reduce positions or stay on the sidelines—not a reason to enter. Wait until it truly releases a stop-loss signal—like drawing back with increased volume above a key moving average—then we can reassess without being too late. The market always has opportunities, but the prerequisite is that you must survive until the opportunity appears.
Wide as the mountains and sea; observe the subtlety of the market.
Walking with Uncle Xiong, witnessing the ups and downs of profit and loss under the sky.
#MAGMA
Click the button below to trade 👇