$AAVE TRADING PLAN
1. Entry Points:
Breakout Trade: Entry above recent highs (~$371.73). Look for a strong close above this level with increased volume for confirmation.
Pullback Trade: If the price revisits support around the 20-day moving average (red line) near $236.49, consider entering on bullish signals like candlestick patterns (e.g., hammer).
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2. Stop Loss:
Breakout Stop: Place a stop loss just below the breakout level or recent swing low (around $350 or $300 depending on risk tolerance).
Pullback Stop: Place a stop loss slightly below the key support zone at $230-$236. This protects against breakdown scenarios.
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3. Target:
Short-Term Target: Target the next key resistance or psychological level at $400-$420.
Medium-Term Target: If momentum continues, aim for $500 or higher. The MACD crossover indicates increasing bullish momentum, especially in the 12,36 setting.
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Key Indicators Analysis:
MACD (3,6): A potential bullish crossover is forming as the MACD line (blue) approaches the signal line (yellow), indicating short-term bullish momentum.
MACD (12,36): Bearish, but flattening. A crossover here would confirm longer-term bullish sentiment.
Support Levels: $236.49 (red line) and $186.25 (yellow line).
Resistance Levels: Around $370-$380 (current price) and $400-$420 (historical resistance).