MERL's performance today is quite interesting. It quickly surged from around $0.38 to $0.42-$0.43 in the early trading session, with a 24-hour increase of 17%, and its market cap has also jumped into the top hundred. At first glance, it indeed looks quite fierce, and many are discussing whether a strong rebound has returned.

But a closer look reveals the clues—this wave of increase is accompanied by very low trading volume. To put it simply, a small amount of capital is creating a hype, making a lively appearance to attract retail investors to follow the trend.

As expected, after the surge, it quickly softened again. Now the price has returned to the range of 0.41-0.42, showing no strength to continue the rebound. In the short term, the bears still hold the advantage, and chasing the high carries significant risk.

My view is: at this stage, such surges are basically signs of trap signals. To reduce risk, the safest approach is to follow the trend and short, rather than blindly buying in.

My personal trading idea (for reference only): short around 0.42-0.44, with a stop-loss set at 0.455, and target the range of 0.36-0.38; if it breaks below the support level of 0.38, you can add to your position, with a stop-loss at 0.40, and a target zone of 0.30-0.34.

In summary, be cautious when the price surges at this level. Following the trend is the steady rhythm.