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momentum
– Momentum on the daily time frame (D1) is currently showing signs of being ready to reverse. Friday’s candle closed with a bullish candle, indicating that the daily momentum may see a bullish reversal in the week ahead. In this case, the market may rise or move sideways for a few days.
– Momentum on the four-hour frame (H4) is currently rising but is approaching overbought territory. This suggests that remaining room for upside may be limited and prices may see a correction in the coming period.
– Momentum on the hourly chart (H1) is currently declining. However, this data is from Friday’s trading session, and since markets are closed for the weekend, we’ll have to wait for the market open on Monday to get a more accurate momentum update.
wave structure
– On the daily time frame (D1), as momentum approaches a reversal, the market will most likely experience several days of upward or sideways movement before daily momentum reverses back to the downside.
– The increased momentum of D1 this time is very important. Typically, when daily momentum rises from oversold territory, the process can take about 4 to 5 days. During this period, if the price successfully breaks through the 5350 level, it is likely that the previous adjustment has been completed and the market may enter a new uptrend.
– If price fails to break above this level, the market may remain in a C-wave correction.
Wave structure on H4
– Looking at the four-hour frame (H4), as analyzed on Friday, the market is likely to have formed a red five-wave downtrend (1-2-3-4-5), and the fifth wave may have been completed.
In addition, the momentum of H4 has been reversed twice in a row before. Although the price has yet to break above the 5186 level, the market has started to form higher highs and higher lows, which could be the start of a new uptrend.
However, 5186 is still an important level to monitor. If the price successfully breaks through 5186 on Monday and confirms that the daily online action can be reversed, the market may enter an upward correction wave after completing the five-wave downward structure.
However, one thing that must be noted is that the momentum of H4 is now approaching the overbought zone again, which may limit the upside in the short term.
Wave structure on H1
– On the hourly frame (H1) we currently have four important liquidity areas above the price, they are:
5179, 5204, 5237, 5287.
Among them, 5204, 5237 and 5287 also correspond to Fibonacci correction and expansion levels and are important resistance levels worthy of attention.
– Monday morning’s market open will help us determine when and where momentum in price levels may reverse in the second half of the year. When the H4 momentum reversal is confirmed, we can rely on these resistance areas to find suitable areas to open short trades.
