$AVAX 🔥Broke out of a descending wedge & is now screaming BULLISH! 📈 Price is attacking key resistance after a massive +6% pump. Time to ride the wave or fade the hype? Let's break it down!
🎯 KEY TECHNICALS:
· Price: $24.46 | Pumping hard! 🚀
· EMAs: Bullish Stack! (10 > 50 > 100 > 200). Price is trading ABOVE all key EMAs. This is the definition of an uptrend. ✅
· RSI (14): Around 75-82! This is OVERBOUGHT territory. ⚠️ Signals strong momentum but also a potential pullback. No bearish divergence on RSI yet.
· MACD: Bullish but watch closely! Histogram is green & above the zero line. However, on some timeframes, DIF/DEA are converging. Momentum might be slowing.
· Bollinger Bands: Price is kissing the UPPER BAND ($24.71). A classic momentum play. A rejection here could send it back to the middle band.
· Volume: Strong volume supporting the move! MA(5) > MA(10). Bulls are in control. 💪
📊 CHART & CANDLE PATTERNS:
· The recent move looks like a clean Bullish Breakout from a consolidation phase.
· Watch for a Bull Flag formation on lower timeframes (5m/15m) for continuation.
· Key to watch now: Is that a Bullish Engulfing or a Doji at the top? A Doji would signal indecision and a potential short-term reversal.
⚡ TRADING PSYCHOLOGY & SIGNAL:
The market is euphoric right now. FOMO (Fear Of Missing Out) is strong. Smart money might be looking to take profits at this resistance, which could cause a dip.
This creates two high-probability scenarios:
🟢 LONG (Aggressive Bull Play):
· Entry: Wait for a small pullback to the $24.20 - $24.30 support (EMA 10/Previous resistance flip). OR a strong bullish candle breaking above $24.70 (Bollinger Upper Band).
· Stop Loss: Below $24.00 ( protects against a fakeout).
· Take Profit: TP1: $24.90 | TP2: $25.20+ 🎯
· Psychology: You're betting on the momentum to continue. Don't chase the green candle; wait for your level. Patience is key!
🔴 SHORT (Contrarian Reversal Play):
· Entry: ONLY if you see a clear rejection at $24.70 (e.g., a bearish engulfing, long wick, or RSI divergence).
· Stop Loss: Above $24.85 (above the high of the rejection).
· Take Profit: TP1: $24.35 (EMA 20) | TP2: $24.00 🎯
· Psychology: This is a fade-the-strength trade. It's higher risk because you're going against the trend. You need CONFIRMATION, not just a hunch.
‼️ MY VERDICT: The trend is unequivocallyBULLISH. The path of least resistance is up.
👉 Action: I'm leaning LONG on a dip. I will not chase. I will wait for price to come to me. If it breaks $24.70 with volume, I might enter a small position for a quick scalp to $25.00.
Remember: This is a SCALP. Manage your risk. Use proper position sizing. 1:2 Risk/Reward or better.
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