Where will the bottom be found in the future?
A large consolidation zone has formed on the four-hour chart, with the upward channel evolving into a wedge-shaped downward channel within the structure, making the market complex and unpredictable.
🔸Bearish Trend
❶ If a consolidation structure is currently being built, a breakout segment proportional to the entry segment may form in the future.
❷ If a two-segment consolidation structure forms, the four-hour chart will evolve into a daily chart bullish divergence structure, presenting the best opportunity to buy spot.
🔸Bullish Trend
❶ If the MACD can break through the downward resistance line with increased volume after a decline, the trend may reverse. Long positions can be established after the second test, commonly known as "chasing the trend."
☞ The negative news has been largely digested, with only the annual Christmas challenge remaining. A rebound within a downward structure is not necessarily a reversal. Respect the trend and consider a trend reversal only after a breakout of key resistance levels.
It is expected that the US economic recession will be hyped in 2026; Q1 market performance is anticipated.