Midday Thoughts

Monday's core contradiction focuses on the geopolitical risk escalation caused by the breakdown of the Israel-Palestine ceasefire negotiations. As a result, international crude oil opened sharply higher, while gold is showing a pattern of a low-open and sideways consolidation.
After the “big pancake” experienced continuous drops over the weekend, it has remained in weak consolidation below the 72,000 level; the technical structure shows bearish dominance.
The 72,000 level is not only the resistance from yesterday’s rebound high point, but also the consolidation and suppression zone after a dead cross of the short-term moving averages at the 4-hour level. Multiple attempts to probe higher failed to effectively break through, forming a strong bearish suppression band.
In the 4-hour chart, MACD continues to run below the zero line; the green histogram momentum has not shown any obvious convergence. The KDJ indicator is diverging downward, and the bearish trend is clear. On the 1-hour chart, the Bollinger Bands are opening downward, running along the lower band; there is insufficient momentum for a short-term rebound.
The first support to watch below is around 69,500. This level is the lower boundary support of the prior consolidation range. If it breaks down effectively, next you can look to 68,500 as the key support; if it is lost, it will open further downside room, looking below 67,000. Trading Strategy
If the “big pancake” rebounds to the 71,500-72,000 range 箜, target 70,000, with a downside view toward 68,500.
If the “second pancake” rebounds to the 2,210-2,240 range 箜, target 2,150, with a downside view toward 2,100.