Market Consolidation on the Rebound: Why the Next Three-Day Correction Could Spark a Major Rally

The past eighteen-day rally has brought us to a critical technical juncture. We're observing a bounce off the two-day line that has now reached what appears to be a potential short-term resistance—specifically the TD9 level. This proximity warrants careful attention to immediate price action over the coming trading sessions.

From a broader market perspective, pullbacks initiated from the three-day line or weekly line timeframes often precede substantial uptrends. The pattern is clear: major surges rarely emerge without foundational consolidation. This is why patience becomes the cornerstone of effective trading at this stage.

Rather than chase momentum at current levels, the prudent approach involves positioning for a likely pullback phase. This correction, when it arrives, could lay the groundwork for the next significant move higher. The three-day line pullback, in particular, represents a natural accumulation zone where big players tend to establish positions before the next leg up.

Strategy-wise, on the rebound environment like this, my personal approach has shifted. I've transitioned away from active swing trading on spot holdings and instead maintain a pure spot position. The plan is straightforward: hold through potential mid-September or mid-October exits rather than attempting to capture diminishing tail-end gains. This disciplined stance acknowledges that chasing the final percentage points often leads to poor risk-reward outcomes.

The key takeaway: market cycles reward those who wait for confirmation over those who force trades. The current bounce is meaningful, but the real opportunity likely awaits in the consolidation phase that follows.