Physical Address
304 North Cardinal St.
Dorchester Center, MA 02124
Does a strong uptrend start a new trend?
momentum
Wound D1:
The momentum for D1 is currently turning to the upside. Additionally, W1 Momentum is also in oversold territory. Therefore, if today’s candle closes and confirms D1 momentum rising, we are potentially facing the start of a new long-term uptrend.
Wound H4:
The H4 momentum is currently preparing to reverse lower. Therefore, there may be a downward correction trend in the short term under H4 until the momentum of H4 moves towards the oversold zone.
Wound H1:
Momentum is currently declining in the first half. Therefore, in the short-term first half, prices may continue to fall or trade sideways until first half momentum reaches oversold territory.
Elliot wave structure
Wave structure on D1
The price reaches the first target area and then moves up strongly. D1 Momentum is in the completion phase of a bullish reversal. Although a reversal has not yet been fully confirmed, these are preliminary conditions that could lead to a new trend.
Especially since W1 momentum is also in oversold territory. Therefore, the uptrend is likely to take at least 3 to 5 weeks.
Wave structure on H4
We need H4 to break above the top of wave B at 4579 to get additional price confirmation of the new trend.
Currently, H4 momentum is preparing to reverse lower. Therefore, it is possible that we may see a bearish reversal trend on H4 soon.
Wave structure on H1
A black five-wave structure 1-2-3-4-5 is currently forming. The previous strong advance may have been wave 3 within this pentagon structure, while the price is currently within wave 4.
One of the characteristics of wave 4 is that it often develops sideways, returning to the 0.382 retracement of wave 3, which is near the 4461 area. Above this area, there is an area of high liquidity that acts as strong support near 4491.
The possible ending area for wave 5 is the convergence area between Fibonacci and liquidity areas, around 4553 – 4572.
Therefore, we look for two possible price areas in a buy/sell setup, as shown on the chart.