TAKE futures market is getting interesting now. The 1-hour and 4-hour RSI have already surged to 81 and 88, indicating obvious overbought conditions, but the 15-minute chart has started to weaken, which is a divergence signal. Especially noteworthy is that the trading volume has shrunk by 58%, which usually means the bullish momentum is waning.

The key levels now are these: the current price around 0.43 is a battleground between bulls and bears. The resistance levels above are at 0.445 and 0.46, while the support levels below are at 0.415 and 0.40.

How to operate? If the price breaks above 0.445, you can go long, targeting 0.46, with a stop loss at 0.435. Conversely, if it falls below 0.415, that’s a signal to short, targeting 0.40, with a stop loss at 0.425. But in the range between 0.415 and 0.445, I suggest holding off and waiting for a clearer direction.

My personal idea is to wait until the price truly breaks below 0.415 before entering a short position. Enter the short, set the stop loss at 0.425, and target 0.40. What’s the logic behind this? After overbought conditions, a correction is highly probable. We seek confirmed pullbacks, not just betting on a possibility.