Mid Week Analyses

25/09/24

As I mentioned in my previous posts, price would take out the highs at NSYE open before beginning its retracement. Great sell if anyone caught a sniper entry from the highs.

Following the correction today, a 10H HL was signalled at 41,917.9 as the biggest TF with a type of low. Despite signalling a 10HL, the smaller TF such as the 7H and 8H failed to signal their respective HL. Furthermore, the 10H HL did not reach the 23.2% fib level.

This indicates that there is potentially more selling to happen that we need to be aware of. Historically once a HL has not been signalled on a smaller TF but is signalled on a bigger TF, this can mean one of two things:
1. Price will resume its downtrend after signalling a LH on the smaller TF to fulfill the HL on the missing timeframes.
2. Price will make new ATHs forgoing the HL on the missing TFs, but these new ATHs will soon reach a level of exhaustion before committing to an even bigger correction.

7H chart showing no HL signalled


10H chart showing HL signalled


Going forward:
Given the current bullish pressure, I have closed my sell positions and entered a buy position since price is clearly respecting a level of support on the smaller TF.

I will monitor the bullish momentum accordingly to observe for signs of retracement.

Using my fibs, it is possible that price can signal a LH on the smaller TF at 42,149.8 - 42,205.3 before resuming its downtrend to make a LL. If not, price will continue bullish to make new ATHs forming a double top region before resuming its downtrend to form a bigger correction.