🔹 Market Transition:

The futures market is in a contract rollover phase, expected to be completed before the Qingming Festival. Some traders may find price levels confusing (May vs. October contracts), so let’s clarify the trading approach.

🔹 Trading Guidelines:

1️⃣ 05 vs. 10 Contracts – Which to Trade?

  • If you already hold May (05) contracts and are positioned for the mid-to-long term, you can continue holding (last trading day: April 30).
  • For new positions, it’s recommended to enter the October (10) contract for better liquidity.

2️⃣ Overall Trend – Bearish Bias

  • The broader market remains in a downtrend, so the primary strategy remains “Sell on Strength”.
  • For existing short positions, consider partial profit-taking and reducing exposure to a stop-loss level of 3350.
  • For new short positions, use a phased entry strategy to manage risk effectively.

🔹 Specific Trading Strategies:

✅ Rebar (RB2510) Strategy:

  • Expected Range: 3220 – 3350
  • Short Entry Zone: 3290 – 3330 (split into 3-4 orders)
  • Stop-Loss: 3360 (raised by 10 points to avoid stop-hunting)

✅ Hot-Rolled Coil (HC2510) Strategy:

  • Expected Range: 3370 – 3470
  • Short Entry Zone: 3420 – 3460 (split into 3-4 orders)
  • Stop-Loss: 3490

✅ Iron Ore (IOM) Strategy:

  • Fundamental Strength Persisting – Requires a cautious short approach.
  • Existing Short Positions: Set a stop-loss at 803.
  • If stopped out, consider re-entering short at 820+, using a final stop-loss at 845.

📌 Daily insights provided by LangZo Steel. For reprints, please credit LangZo Steel.