Morning Trend | Vistra is consolidating with reduced volume approaching support, a directional choice is coming?
On January 22, Vistra closed again at a lower level, with the daily K-line continuing to stay within the lower zone of the Bollinger Bands. The intraday volatility narrowed, and trading volume continued to shrink, with the overall atmosphere in the energy sector remaining weak, and the attention on overseas cyclical stocks dropping to a freezing point. Community traders are generally waiting for new developments, with the main direction still unclear. The recent highlight is that the volume contraction has reached a critical point—high-level capital risk aversion is basically over, selling pressure has weakened, and although buying interest has not yet increased, bottom support is slowly emerging. The news front remains silent, lacking industry-level positive developments, and there are no significant new catalytic events for Vistra. The moving averages have not yet fully formed a bearish arrangement, but the ongoing technical pressure is difficult to resolve in the short term. Although the MACD death cross has not completely worsened, it has made many traders wary of the possibility of a sideways market turning.
From the market perspective, if there is an effective breakout of the weak resistance zone with increased volume, the market may reverse the short-term weakness and attract swing funds to follow. Otherwise, if it breaks down again after a period of low-volume fluctuations, it will trigger a new round of stop-loss selling, pushing into deeper areas. However, some technical analysts are studying the unusual support emerging at the lower Bollinger Band, and if there is a marginal improvement in industry news or community capital flow, it could instantly ignite a short-term "direction selection" market.
Operational advice: In an extremely weak market, there is no need to hold heavy positions; focus on light positions to speculate on bottom reversal and directional breakthroughs, while real-time tracking of intraday volume and community activity is worthwhile. If support can be maintained and a new rebound starting point is established, the short-term rebound window is worth close attention; if support is lost and volume increases, it is essential to exit decisively to prevent deep losses
Technical Forecast·
