AVAX price develops bullish entry that could generate 30% in profit
|- AVAX price develops a powerful bull flag formation on its Point and Figure chart.
- A probable Triple Top pattern breakout could yield significant gains.
- Downside risks remain and could be substantial.
AVAX price action has made some great moves over the past week, making some significant gains and leading its peers in the DeFi space with its performance. As a result, several trading opportunities have developed for both bulls and bears.
AVAX price is likely to continue its bullish momentum, but bears could regain control
AVAX price has two very strong trade opportunities on its $2.00/3-box reversal Point and Figure chart, one long and one short.
The hypothetical long setup for AVAX price is a buy stop order at $96, a stop loss at $88, and a profit target at $144. The trade represents a 6:1 reward for the risk with an implied profit target of 52% from the entry. A trailing stop of two to three boxes would help protect any profit made post entry because it is highly unlikely that AVAX will move $144 in a single X column.
AVAX/USDT $2/00/3-box Reversal Point and Figure Chart
The hypothetical long entry is invalidated if AVAX price drops below $76 before the long entry is triggered.
On the short side of the trade for AVAX price, the theoretical setup is a sell stop order at $82, a stop loss at $88, and a profit target at $62. The trade is a 3.33:1 reward for the risk with a projected profit target of 23% from the entry. However, there is a caveat with this trade setup.
AVAX/USDT $2/00/3-box Reversal Point and Figure Chart
The theoretical short setup is only valid if a Triple Bottom or a Split Triple Bottom pattern develops. Additionally, it is invalidated if AVAX price moves to $100 before the short entry is triggered.
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