We are in a bearish trend, on a lower time frame, but on a higher time frame, we are still bullish. At this level of $14.50, support level, seems to a strong catalyst for a mere bounce up for 15% or even more. This level was earlier at a resistance, which has now turned support and market needs to retrace back to the support level, in order for the market to move up.

At the support level, the retracement level of 75-78.6% is in confluence with the support level. This support level is in confluence and has a strong push up criteria.

The descending trendline has been broken out for breakout buys. The candles have validated the breakout buy by opening and closing above. Now, as the resistance has broken as well, we just need to wait for the retracement. 

EMA 50 is bullish and EMA 200 is bearish. Market is tapping the EMA 200, and we might see a pullback. Once thats done, we will have the support level, where our long positions will be waiting. We anticipate the market to break towards the upside by breaking the EMA 200. 

Both the oscillators are in a bullish region, at an over bought area. This area needs to be neutralized at the levels from where, the confluence is formed with the support level and the retracement. 

The Chainlink is at a discounted price right now and has the potential to up 100% from the current price. The upside is infinite where as the down side is limited to the $10.

Chainlink buys from 14.50

Mar 20 2022

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