MERL's performance these days has not been very good. Volume-driven decline, with price action clearly showing a weak structure, coupled with consistently high open interest, suggests the possibility of long liquidation or main force distribution.

From the market perspective, the daily decline has exceeded 15%, accompanied by a significant increase in trading volume, which is a strong trend continuation signal. The price has already broken through all recent support levels, and market sentiment is beginning to shift towards panic. In an environment of high open interest, any rebound is likely to encounter new selling pressure.

Technically, my approach is as follows — enter short positions in the range of 0.204 to 0.208, with a stop-loss set at 0.218 (this is rigid and must be enforced). The first target is 0.185, and the second target is 0.168. The market logic is very clear: downward momentum dominates the market, and currently, reversal should not be considered. We need to wait for clear signs of a bottom before changing our strategy.