MERL these days is really heart-wrenching to watch. The 0.50 level was not held three times in a row, and it was smashed back each time. Clearly, someone above is waiting to dump, and the bears now have the upper hand.

Even worse, the trading volume is shrinking, but selling pressure is still quite heavy. The previous high and the trendline form a double ceiling. The technical indicators are also not optimistic; after the MACD death cross, the green bars are still decreasing, and the RSI has dropped below 40. From both sentiment and structural perspectives, the weakness is evident.

In such times, caution is advised. The probability of a short-term breakout is low, and it may continue to consolidate at the bottom.