Hello trader
AAVE is in the down trend but in this chart we can see price make LL and now we have HL in the descending channel if price can break above the channel at 0.5 fib ratio with high amount of volume and at least close 1D candle above the weekly resistance so we can count this as good break out and trend reversal but still necessary for price to goes above the pervious high at 350$ .
if price get rejected from the downward sloping channel price start to to goes down and most probable thing is that price find some support from upward yellow line ; if price break the yellow line we can look for short position when 4h candle close below the line and also goes below the HL .
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AAVE is in the down trend but in this chart we can see price make LL and now we have HL in the descending channel if price can break above the channel at 0.5 fib ratio with high amount of volume and at least close 1D candle above the weekly resistance so we can count this as good break out and trend reversal but still necessary for price to goes above the pervious high at 350$ .
if price get rejected from the downward sloping channel price start to to goes down and most probable thing is that price find some support from upward yellow line ; if price break the yellow line we can look for short position when 4h candle close below the line and also goes below the HL .
I hope you enjoyed this analysis.
Do not forget to like and subscribe
