【$TAO Signal】Strong Short Squeeze Continues, Buy on Dip at 1H

$TAO The 1H timeframe is in a high-level consolidation after a strong rally, with price staying close above EMA20(179.98), indicating a typical strong consolidation. The 4H chart shows three consecutive large bullish candles, confirming a trend reversal. The current price has broken through the previous dense trading zone, opening up upward space. Open interest remains stable, with extremely low rates, and the order book shows significant buy-side depth (depth imbalance 1.95%), which is characteristic of a short squeeze market. The main force appears to be actively supporting the price.

🎯Direction: Long (Long)

🎯Entry/Order: 199.0 - 200.5 (Reason: Dynamic support at 1H EMA20, buy on dip in strong trend)

🛑Stop Loss: 194.0 (Reason: Break below the start of the 1H large bullish candle and ATR(7.5) lower band)

🚀Target 1: 210.0 (Reason: Previous high resistance and psychological level at an integer)

🚀Target 2: 225.0 (Reason: 1.618 Fibonacci extension based on recent rally)

🛡Trade Management:

- Position Size: Light (Reason: Daily gains have exceeded 28%, volatility is very high, strict risk control needed)

- Execution Strategy: When price reaches 210, reduce position by 50% to lock in profits, and move the remaining stop loss up to the entry price. If price cannot hold above 200 and falls below 199, consider exiting early.

Depth Logic: 1H RSI is at 86.85, indicating overbought conditions, but in a short squeeze scenario, RSI can remain subdued for a long time, which is a sign of strength. The key is whether the price can hold above 1H EMA20. The 4H RSI is at 79.91, still room to rise. Open interest remains stable during the price increase, indicating not a short squeeze trap but active long accumulation, suggesting sustainability. There is a large cluster of buy orders in the 199.4-199.5 range, forming strong intraday support.

Trade here 👇 (
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