MAGMA is currently trading inside a broader descending channel on the 4H timeframe, but short term price action is showing signs of compression. Higher lows are forming while price presses into a descending resistance trendline, creating a tightening structure just below a key supply zone.
The fair value gap sits between 0.118 and 0.138, which also aligns with a visible imbalance zone. This makes it a critical decision region. Price is now attempting to build strength above the 0.093 to 0.094 support. As long as this level holds, bulls still have a valid structure and momentum can continue building toward the FVG.
A strong breakout and acceptance above 0.118 could trigger a push toward 0.172 and potentially 0.183, marking a significant shift in structure.
On the other hand, failure to break the descending resistance and a loss of 0.093 support would invalidate the short term bullish setup. That scenario opens the door for continuation lower toward 0.087 and possibly the lower boundary of the overall descending channel.
This is a clear decision zone. The reaction at supply will likely determine the next major move.
