Monday Trading Strategy

The overall moving averages are arranged in a bullish upward pattern, and the overall trend remains strong. Currently, the short-term 5-day moving average price is 78,694.8, and the current price is 79,006.3, with a very small gap. In the short term, the market is likely to test the support strength of this moving average.

The MACD indicator maintains a golden cross upward, indicating sufficient medium-term upward momentum, but the red histogram has already reached a high level, and there is a risk of weakening the upward strength in the future.
Regarding Bollinger Bands, the price has already broken through the upper band, indicating the short-term market is overbought, and there is a need for a pullback and correction, moving toward the middle band at 78,185.29.
The strength indicator RSI is in a neutral to slightly strong zone, not yet fully entering the overbought territory, but the short-term upside potential is limited; the KDJ indicator continues its golden cross, but the J value has entered the overbought zone, and the pressure for a short-term pullback has significantly increased.

Overall Trading Direction

The main trend remains bullish, but the short-term technical indicators are seriously overbought, making it unsuitable to chase the highs. It is preferable to wait for a pullback before entering long positions at lower prices.

Entry Reference

1. Aggressive Operation: When the price pulls back to the Bollinger middle band zone at 78,185-78,200, and forms a rebound or stabilization candlestick pattern, such as a bullish candle with a lower shadow, consider entering a long position with a small amount.

2. Conservative Operation: Wait for the market to further pull back to the key support near 78,007, and after trading volume significantly decreases and selling pressure weakens, then choose an entry point.

Stop-Loss Setting

Implement risk control uniformly, placing stop-loss orders at a reasonable interval below the entry price. For example, if entering at 78,200, refer to a stop-loss around 75,800-76,000. If the key support is broken, exit promptly to avoid large losses.

Take-Profit Targets

1. First target: 79,685. After reaching this level, consider reducing some positions to lock in profits.

2. Second target: 80,409.
If the market volume surges and strongly breaks through the 79,685 resistance level, you can continue holding and look toward the 81,000-81,363 range.