AAVE to $17The probability of further upside following a massive 196,000%!! return since August 2019 and two overbought conditions has reached a limit. The risk / reward now belongs to the sellers.
Why bearish? On the above weekly there a number of significant developments:
1) Price action has recently broken the 21-week EMA (yellow line), came back up to test it as resistance and confirmed with a full bodied candle closing below.
2) Bearish divergence between price action and the oscillators. Higher highs in price action with lower highs in RSI and MFI.
3) RSI breaks through the 50 level, came up to test it and confirmed resistance. RSI now <50 = very bearish.
4) Astonishingly 87% of tradingview ideas are long counting the first 50 recently published. 90% of traders out there will lose money. Don’t be the 90.
5) A ‘spinning top’ candle recently printed on the monthly chart (below) but was unable to confirm trend reversal until the following month. The trend reversal is now confirmed. Additionally the Stochastic RSI has crossed down 80 (yellow circle), do not ignore this especially after such increase in price.
A short entry from $420 is amazing but consider the risk taken. That’s greed taking to you.
Trade is void with a weekly candle closing above $530.
Target? Two, 1st $74 followed by $17
WW
