Looking at AAVE on the daily chart, wondering if we're forming a larger head-and-shoulders
Been looking at AAVE's daily chart and can't shake the feeling we're sketching out a larger head-and-shoulders pattern. The left shoulder seems to have formed around late Feb/early March, with the head topping out mid-March, and now we're possibly in the process of forming the right shoulder. If it plays out, the neckline looks to be around the $100-$105 range. I'm curious if others are seeing this, or if I'm just looking for patterns where there aren't any.
Of course, this whole idea is invalidated pretty quickly if we get a sustained break above the previous head's high, say above $150. That would suggest stronger bullish momentum than a bearish reversal pattern. Just trying to map out some scenarios and wanted to throw this out for discussion. Anyone else got a view on AAVE's current structure?
That's an interesting observation regarding the potential head-and-shoulders on AAVE's daily. I hadn't considered that specific pattern, but looking at the price action around those dates, I can see what you mean. What are your thoughts on the volume during the formation of these potential shoulders and head?