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momentum
The momentum on the weekly time frame (W1) has reversed to the upside, so the uptrend on the weekly time frame is likely to continue in the coming weeks.
– Momentum on the daily time frame (D1) is currently in overbought territory, warning of a possible reversal this week.
Momentum on the four-hour frame (H4) is gearing up, so prices are likely to continue rising as the Asian session begins.
wave structure
Wave structure on perimeter frame (W1)
– On the weekly frame, the orange five-wave structure (1)(2)(3)(4)(5) is forming and the price may currently be within the extended orange fifth wave.
– In the orange fifth wave we notice the blue five wave structure and the price is currently in the blue fifth wave.
– As the weekly momentum reverses to the upside, the fifth wave still has the potential to continue extending.
However, extreme caution must be used because…
While momentum is still supporting the uptrend, the price target for Orange Wave 5 has reached the 1.0 Fibonacci target area of the Orange (1)-(3) wavelength, which means the risk of a reversal in this area is very high.
Wave structure on the daily frame (D1)
– In the blue five wave structure, the price is currently in the blue fifth wave.
– Within the blue fifth wave, the orange five-wave structure (1-2-3-4-5) formed and the price may currently be in the orange third wave.
– As momentum on the daily frame prepares to reverse into overbought territory, this suggests there is a good chance that prices will reverse lower during the week, forming a fourth orange wave.
Wave structure on the 4 hour frame (H4)
– On the four-hour frame, Violet forms a five-wave structure (1-2-3-4-5), with the price currently located within the fifth Violet wave.
– In the purple fifth wave, we again notice the black five-wave structure (1-2-3-4-5) and the price is likely to be in the black fifth wave.
– Currently, there is a crossover area of Fibonacci levels, as measured by the wave structure at different levels, intersecting in the price range between 5010 and 5038.
This suggests that this area could be a strong resistance area for the current rise.
– If the daily frame candle (D1) closes tomorrow, confirming the momentum reversal to the downside, and the price fails to break above the 5010-5038 resistance area, then this area is likely to be the end of the orange third wave on the daily frame, and the market will move towards the orange fourth wave on the daily frame.
trading plan
The detailed trading plan will be updated tomorrow once actual price data and clearer confirmation signals emerge.
