Chainlink has initiated a bullish trend across all of its timeframes. At this level of $18, market is at a resistance level. We need to wait for the market to retrace back to the support level at the price point of 15.30. This area will be our long area. Link has started to form higher highs and higher lows. This means, bullish momentum is building up for a continuation 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. On the other hand, we have a support trendline tapping the prices at the support level. This will act as a confluence for the market to continue moving up.

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.

Waiting for a retracement on Chainlink

Vasl Capital

Mar 29 2022

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