Market Review: Key Support Broken Amid Rising Volatility
During Friday’s night session, the market saw increased volume and open interest, breaking through the critical support level of 3300. This triggered the planned breakout entry at 3295. Diverging forces are now influencing the black series, leading to heightened market complexity.

Divergent Forces at Play

  1. Downward Pressure from Major Capital: Noticeable in coke, rebar, and hot-rolled coil, where bearish sentiment prevails.
  2. Upward Support from Iron Ore: Iron ore prices show resilience, resisting downward pressure.
  3. Strengthening Basis Effect: Futures are declining faster than spot prices, indicating a stronger basis.
  4. Uncertain Policy Expectations: While there are optimistic forecasts tied to upcoming key meetings, uncertainty still lingers.

Trading Recommendations: Strategic Navigation Amid Divergence

  • Monitor Support Levels: Key areas like 3295 offer opportunities to gauge market momentum and reassess positions.
  • Balance Risks: Hedging may be prudent given the contrasting market drivers.
  • Watch Policy Updates: Pay close attention to developments from the critical meetings, as these could shift market sentiment.

Navigating this tug-of-war requires precision and adaptability. Ensure your strategy aligns with the market’s evolving dynamics.

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