Heading into the Tokyo session, MGC sits in a critical decision zone. Price action on the 5-minute shows a clear double bottom structure forming near $3,778 a level that has already acted as a demand shelf twice today. From a quant perspective, we have a short-term oversold condition colliding with intraday support, which typically presents a mean-reversion probability spike in low-liquidity Asian hours.
Bullish scenario (42% probability):
- Confirmation trigger is a break and hold above $3,787 (micro neckline).
- Immediate resistance comes in at $3,790–$3,794 (local VWAP + micro EMA confluence).
- If liquidity builds, stretch target aligns with the 50% fib retrace of the last swing at $3,391.7 (highly dependent on overnight momentum continuation).
- Risk: Tight stop just below $3,776 to avoid chop whipsaws.
Bearish scenario (58% probability):
- Failure to reclaim $3,787 opens the door for liquidity sweep below $3,778.
- Initial target $3,770, with potential extension toward $3,765 if Asia volume remains one-sided.
- Downside bias is supported by the broader 1H downtrend, VWAP resistance slope, and previous session imbalance still unfilled.
Factors in play:
- VWAP slope: Bearish.
- EMA separation: Expanding to the downside, signalling trend continuation potential.
- Volume profile: Thin liquidity below $3,778 increases probability of a stop-hunt flush before any reversal.
Tokyo session game plan:
Wait for breakout confirmation either a micro double bottom neckline break for the long scalp, or a rejection for the short continuation. Execution discipline is key; Tokyo often gives one clean directional push before stalling into consolidation.
Bullish scenario (42% probability):
- Confirmation trigger is a break and hold above $3,787 (micro neckline).
- Immediate resistance comes in at $3,790–$3,794 (local VWAP + micro EMA confluence).
- If liquidity builds, stretch target aligns with the 50% fib retrace of the last swing at $3,391.7 (highly dependent on overnight momentum continuation).
- Risk: Tight stop just below $3,776 to avoid chop whipsaws.
Bearish scenario (58% probability):
- Failure to reclaim $3,787 opens the door for liquidity sweep below $3,778.
- Initial target $3,770, with potential extension toward $3,765 if Asia volume remains one-sided.
- Downside bias is supported by the broader 1H downtrend, VWAP resistance slope, and previous session imbalance still unfilled.
Factors in play:
- VWAP slope: Bearish.
- EMA separation: Expanding to the downside, signalling trend continuation potential.
- Volume profile: Thin liquidity below $3,778 increases probability of a stop-hunt flush before any reversal.
Tokyo session game plan:
Wait for breakout confirmation either a micro double bottom neckline break for the long scalp, or a rejection for the short continuation. Execution discipline is key; Tokyo often gives one clean directional push before stalling into consolidation.
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.
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.