AVAX presents buying opportunity before Avalanche hits $110
- AVAX price continues the rally off of the Thursday lows into the Friday session.
- Bullish entry opportunity confirms two bullish Point and Figure patterns.
- Outlook at the present level is bullish, but downside risks remain.
AVAX price has developed a new higher low on the Point and Figure chart, giving many Point and Figure traders the confirmation necessary to look at the long side of the trade. As a result of the current price action, a new probable long entry setup has appeared.
AVAX price is set to return to the $110 area
AVAX price has a new long entry opportunity on its $2.00/3-box reversal Point and Figure chart. The entry would confirm two bullish events simultaneously. First, the entry would confirm a Bear Trap pattern. Second, and most importantly, the entry would generate the breakout above the current bear market angle and convert AVAX into a bull market.
The hypothetical long trade setup is a buy stop order at $86, a stop loss at $78, and a profit target at $110. The profit target is derived from the Vertical Profit Target Method and represents a 3:1 reward for the risk setup. In addition, a two-box trailing stop would help protect any profit made post entry.
This trade setup is no longer valid if Os prints are reversed before the entry.
Despite the bullish setup on the Point and Figure chart, AVAX price and traders are entering into the weekend, which may be more volatile than expected due to Russia’s invasion of Ukraine. Sometimes the best trade is no trade at all, especially when so many significant unknowns exist during off-peak trading periods.
Author
Jonathan Morgan
Independent Analyst
Jonathan has been working as an Independent future, forex, and cryptocurrency trader and analyst for 8 years. He also has been writing for the past 5 years.
