AAVE: Falling Wedge Breakout

Trade setup: Bullish breakout from a Falling Wedge pattern needs to be confirmed by a break above the prior swing high of $95 (also resistance). If it does, price could signal a bullish trend reversal with +20% upside potential to $120 thereafter.

Patterns: Falling Wedge Usually results in a bullish breakout. When price breaks the upper trend line the price is expected to trend higher. Emerging patterns (before a breakout occurs) can be traded by swing traders between the convergence lines; however, most traders should wait for a completed pattern with a breakout and then place a BUY order.

Trend: Uptrend on Short-Term basis, Downtrend on Medium-Term basis and Neutral on Long-Term basis.

Momentum is Mixed as MACD Line is above MACD Signal Line (Bullish) but RSI ~ 50 (Neutral).

Support and Resistance: Nearest Support Zone is $80. The nearest Resistance Zone is $95 (previous support), then $120, and $130.


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