Elliott Wave Analysis
After Friday’s deep decline, price touched the level of wave 1 (black), invalidating the flat wave 4 scenario. Currently, the structure of wave 5 (black) appears to be a terminal triangle, and the sharp and steep drop afterward is consistent with post-terminal triangle behavior.
Post wave 5 completion, two possible bearish scenarios emerge:
Scenario 1: Price is forming a zigzag (abc in black). Wave c may have completed at 3305 — the first target. However, 3290 remains a significant lower target. A recovery that breaks above 3340 would help invalidate Scenario 2.
Scenario 2: Price is in a 5-wave bearish impulse. To confirm this, price must not break above 3340, as that would overlap with wave 1 and invalidate the structure. If this holds, the next key target lies below 3245.
Momentum Analysis
Daily (D1): When the market opens this week, momentum is expected to enter oversold territory — suggesting a weakening downtrend. Confirmation is needed.
H4: Momentum is already in oversold territory, indicating a potential bullish move early in the week.
H1: Also oversold. A reversal is likely during the Asian or European session, favoring Scenario 1 and a buy setup near wave c = wave a.
Trading Plan
Buy 3305 – 3302
SL: 3295
TP1: 3340
TP2: 3393
Buy 3292 – 3289
SL: 3282
TP1: 3305
TP2: 3340
TP3: 3393
After Friday’s deep decline, price touched the level of wave 1 (black), invalidating the flat wave 4 scenario. Currently, the structure of wave 5 (black) appears to be a terminal triangle, and the sharp and steep drop afterward is consistent with post-terminal triangle behavior.
Post wave 5 completion, two possible bearish scenarios emerge:
Scenario 1: Price is forming a zigzag (abc in black). Wave c may have completed at 3305 — the first target. However, 3290 remains a significant lower target. A recovery that breaks above 3340 would help invalidate Scenario 2.
Scenario 2: Price is in a 5-wave bearish impulse. To confirm this, price must not break above 3340, as that would overlap with wave 1 and invalidate the structure. If this holds, the next key target lies below 3245.
Momentum Analysis
Daily (D1): When the market opens this week, momentum is expected to enter oversold territory — suggesting a weakening downtrend. Confirmation is needed.
H4: Momentum is already in oversold territory, indicating a potential bullish move early in the week.
H1: Also oversold. A reversal is likely during the Asian or European session, favoring Scenario 1 and a buy setup near wave c = wave a.
Trading Plan
Buy 3305 – 3302
SL: 3295
TP1: 3340
TP2: 3393
Buy 3292 – 3289
SL: 3282
TP1: 3305
TP2: 3340
TP3: 3393
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👉 Join the channel to receive more scalping signals!
Channel Telegram: t.me/+XkFQ95yHVOEwNDc1
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Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.