HMPRO: Long-Term Accumulation & Reversal Setup
HMPRO: Long-Term Accumulation & Reversal Setup
1. Technical Overview & Structure
Long-Term Downtrend: Since late 2023, the price has been contained within a descending channel, constrained by a long-term downward trendline.
Base Building & Accumulation: The Volume Profile reveals heavy volume nodes concentrated in the 6.00 – 6.50 range, acting as a robust accumulation zone and multi-year structural support.
Triangle Breakout / Reversal: Price action is compressing into a converging pattern near historical support, signaling seller exhaustion and a strong foundation for a potential trend reversal as it challenges the upper resistance trendline.
2. Key Price Targets (Fibonacci Projections)
Short-Term Target (7.15 – 7.65): Corresponds to the 1.0 and 1.618 Fibonacci Extension levels, marking the initial breakout hurdle.
Medium-Term Target (8.50): Aligned with the 2.618 Fibonacci Extension, which comes into play if buying momentum accelerates.
Long-Term Target (9.35+): Aligned with the 3.618 Fibonacci Extension, representing a complete structural shift back into a major bull trend.
3. Risk Management
Invalidation Level / Stop Loss: A breakdown below the 6.00 – 6.30 support cluster would invalidate this reversal setup, signaling continuation of the broader downtrend.