The STAR Market delivered a harsh opening today, dropping directly by 0.88%, with stocks across the sector all in the red.
In fact, this pullback was well-anticipated—yesterday's rally hit right up against the 30-day moving average, which also coincided with the lower boundary of the previous trading range. That area is packed with trapped positions, making a short-term retest almost inevitable. So today's gap down was completely within expectations.
From a technical perspective, the index is now approaching the 20-day moving average. If it actually touches this line, it could turn out to be a good entry opportunity. After all, resistance above is clear and support below is also well-defined; these positions often present structural opportunities. The key is whether it can stabilize near the 20-day moving average—if it does, more upside potential could be unlocked.
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MrRightClick
· 12-09 23:59
Dropping again and again—whether the 20-day moving average can hold is key.
The STAR Market delivered a harsh opening today, dropping directly by 0.88%, with stocks across the sector all in the red.
In fact, this pullback was well-anticipated—yesterday's rally hit right up against the 30-day moving average, which also coincided with the lower boundary of the previous trading range. That area is packed with trapped positions, making a short-term retest almost inevitable. So today's gap down was completely within expectations.
From a technical perspective, the index is now approaching the 20-day moving average. If it actually touches this line, it could turn out to be a good entry opportunity. After all, resistance above is clear and support below is also well-defined; these positions often present structural opportunities. The key is whether it can stabilize near the 20-day moving average—if it does, more upside potential could be unlocked.