Managing Risk During FOMO-Driven Market Surges

Launch Chart
May Chen
CN50USD
·
Sep 30 2024
snapshot
The A50 index is in an overbought phase, driven by FOMO, with emotions dictating how high it can rise. Fundamental analysis is now ineffective, so increased reliance on technical analysis is crucial. The outlook remains bullish, but watch for potential sharp pullbacks at the 14,000 (weak) and 14,400 (strong) resistance levels. Focus on high-sentiment periods like the Asian and European market openings, and wait for breakouts before entering trades. Use the CCI trend indicator to time your entries and exits.