To be honest, the incremental market structure hasn’t given much, but that bearish candle at $PROM has really hit the mark. After a four-day consecutive decline on the daily chart, the rebound strength has been getting weaker each time. In this setup, I can’t see any reason for a reversal. To put it bluntly, what I fear most right now isn’t the drop itself—it’s that right before it drops, it may give you a false breakout first. This kind of movement in PROM is a typical downtrend continuation pattern: every time it rallies, it’s basically handing something over to the shorts.
Volume also hasn’t followed through. The rebound was on shrinking volume, while the selloff came with expanding volume—so the capital’s stance is already very clear. I won’t go into specific key levels in detail; everyone can see on the chart that the overhead pressure layers upon layers, while the support below is as thin as paper. With this risk-reward ratio, people who are looking to go long truly don’t feel confident. I prefer to follow the trend: when the rebound reaches the resistance zone, that’s a good place to observe the shorts’ strength—not to guess the bottom.
The market won’t rise just because you think it has dropped enough. Until the trend shows its direction, any bottom-picking idea is essentially going against your own wallet. We do analysis to be objective: we make the judgment based on the signals the chart provides. And right now, the signal is that the shorts haven’t finished yet.
As wide as gazing at mountains and seas, and as subtle as reading the market.
Walk alongside Uncle Xiong, and see the gains and losses of the skies.
#PROM
Click below to trade 👇
Volume also hasn’t followed through. The rebound was on shrinking volume, while the selloff came with expanding volume—so the capital’s stance is already very clear. I won’t go into specific key levels in detail; everyone can see on the chart that the overhead pressure layers upon layers, while the support below is as thin as paper. With this risk-reward ratio, people who are looking to go long truly don’t feel confident. I prefer to follow the trend: when the rebound reaches the resistance zone, that’s a good place to observe the shorts’ strength—not to guess the bottom.
The market won’t rise just because you think it has dropped enough. Until the trend shows its direction, any bottom-picking idea is essentially going against your own wallet. We do analysis to be objective: we make the judgment based on the signals the chart provides. And right now, the signal is that the shorts haven’t finished yet.
As wide as gazing at mountains and seas, and as subtle as reading the market.
Walk alongside Uncle Xiong, and see the gains and losses of the skies.
#PROM
Click below to trade 👇