AAVEUSDT
Hello Traders,
AAVE is forming inverse head and shoulders pattern on a daily timeframe which is a short term bullish reversal sign. Prices have been fluctuating between 160-300 since November. AAVE formed left shoulder and head during December and finally formed the right shoulder in 2022. Left neck is lower than the right neck which is one of the main characteristics of head and shoulder pattern. AAVE tested resistance zone of 280-290 lately but couldn't break above it. It made a partial decline forming the right shoulder and we know that partial declines or partial rises are usually a sign of the change in the trend. Volume has shaped U pattern which also pretty common in head and shoulder patterns.
Even though there are strong signals and confirmations of a bullish trend I would suggest to wait for the final confirmation of price breakout above the resistance line (red line) and the right neckline (blue line). If the price breaks and trades above these 2 lines open a long position.
Using our measure rule (distance between the lowest price in head formation and the highest price on neckline) for inverse head and shoulder patterns, my price targets are:
1st price target is $360 for the next 15-30 days.
2nd price target is $450 for the next 15-30 days.
I will share an update if I see any reversal signs.
Good luck and trade smart! (not a financial advice)
Please like and share if you like my idea.