Chainlink started to move up after the political arena gained massive traction due to the Russian Ukrainian conflict. Chainlink dropped low as much as 11 and then started moving up. Currently residing at the resistance level of 14, we anticipate the retracement back to the 12 price point, where we will be taking a long position. Market has started to form higher highs and higher lows and this goes for the confirmation of a higher low at the minor support level.

The major descending trendline has been broken out for buys and the validation of price action has been done and confirmed. Now from the resistance level, we anticipate the bounce downwards towards the retracement level. 

At the minor support level, the retracement level of 75-78.6% is in confluence with the support level where we are looking towards going long.

EMA 50 and EMA 200 are still bearish. It needs to be noted that the death cross is still bearish. At the resistance level, EMA 200 may be retested or broken. The support level we are looking to go long, we don't see any indication of the EMA to be in confluence with. We will only consider the EMA's are the resistance level for profit taking.

Both the oscillators are in a bearish region. Hoping back from the bearish region, RSI and CCI have formed a bullish divergence which needs to be absorbed in the market, due to which market started moving up. This divergence may have a long term effect given its formed at a major level and a daily time frame.

The reason we are so adament in not letting Chainlink go is that the potential towards upside is limitless. Having caught at a good level, there are decent gains to be made on Chainlink.

Descending trendline breakout buys on Chainlink

Feb 26 2022

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