Overbought - Pull back for rocket launch to $70 in the LT

2023年12月5日

AFRM should def be on your watch list going into 2024. To keep my analysis simple, we can see a major inverted head and shoulder forming with an approach to the neckline after completing the head. We can see a high probability of a rejection at this neckline due to the RSI showing overbought on the daily/weekly. I wouldnt short the neckline due to the high momentum the overall markets have experienced, we can still run higher in this overbought scenario.

2 possible scenario ill look at.

Entry long on the bottom of the right shoulder with candlestick confirmation/volume with a target of the neckline.

Second, Entry long break of the neckline with volume (Can wait for retest for entry) and stop loss at the bottom of right shoulder.. target $70 with TP at $50 and $60.

Target could be reached in 1-3 months or sooner.

Not financial advise, pure speculation. Use proper risk management.

2023年12月18日

交易進行

I was hoping for the 3rd shoulder formation but looks like we wont be getting it. Instead we can side that this is purely a cup and handle bottom. Similar to COIN its hard to time the entries into a call option as this trade is still very early.

The pull back to the neckline was a great entry and now we are monitoring for small trend changes within the 4 hour TF.