December 4th Afternoon Thoughts
Currently, from the market structure perspective, the second contract surged to around 3713 in the morning before starting to decline. It is now entering a period of oscillation correction, thus confirming the resistance level around 3700. The upward momentum is clearly weakening, and it is now around 3680. The afternoon operation for Boyan is still focused on short positions.
In terms of the MACD indicator, although the bearish energy bars are gradually shrinking, this does not indicate that the bearish strength is weakening. On the contrary, it signifies that the bears are accumulating energy in preparation for a more intense downward trend. Once the bearish energy bars increase again, the market will surely accelerate its decline. Therefore, it is advisable to decisively adopt a bearish strategy for the main contract at this time. The current oscillation correction is merely a brief calm before a significant drop in the market, and a crash could happen at any moment.
Trading Suggestions:
Short around 96500-97000 for the main contract, targeting around 94500.
Short around 3690-3730 for the second contract, targeting around 3630.
