$ is flashing a high-conviction signal on the 4H timeframe. After a period of cooling off, weโve just witnessed a textbook Swing Low (SW L) followed by a powerful Change of Character (CH). This shift in market structure suggests that the bulls are back in the driver's seat.
๐ THE TECHNICAL SETUP
The recent price action wasn't just a random bounce; it was driven by high momentum and "marubozu" style candles, signaling strong buyer interest.
The Trigger: A clear break above the previous local lower high, confirming a shift from bearish to bullish intent.
The Opportunity: We are looking for entries on pullbacks to the newly formed support levels. If the Key Level is reclaimed and held, the "air gap" above offers a massive risk-to-reward ratio.
๐ ๏ธ STRATEGY & ENTRY
To navigate the volatility, we recommend a DCA (Dollar-Cost Averaging) approach across two primary entry zones:
Entry 1: Near the immediate retest of the CH level.
Entry 2: Deeper pullback into the primary demand zone (for better risk-adjusted sizing).
Pro Tip: Scaling into the position helps you stay in the trade even if the market decides to "wick" down to hunt liquidity before the real move starts.
๐ฏ TARGETS & INVALIDATION
Short-term Targets: Local resistance levels (TP1, TP2) to secure initial profits.
Primary Objective: A full retest of the recent swing highs once the macro structure confirms.
Invalidation: The setup is void if a daily candle closes below the identified invalidation level. If that floor breaks, the bullish thesis is dead, and it's time to reassess.
๐ก FINAL THOUGHTS
This setup emphasizes disciplined entry. Don't chase the green candlesโwait for the market to come back to your key levels. With GameFi and AI-gaming narratives heating up in early 2026, MAGIC is perfectly positioned for a momentum surge.
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