After a bloody ride downwards, chainlink is yet again at a premium level of support, also a double bottom.  This support level is one of the tough spots given its also a deman level and major buying orders rest here. We will be looking to go long at this support level, at the price of 5.50, with the ancitipation of continuation up towards the 9 price point.

The descending trendline has been broken out for buys. The candlesticks have been validated by the opening and closing above the trendline. After the breakout buy, the neeeded retracement is done by tapping the double bottom support at the mentioned price. We can also wait for a lower time frame confirmation for a descending trendline breakout buy.

There is no current retracement indication on the setup.

EMA 50 and 200, both of them are bearish and in a bearish death cross. Earlier, there was a slight breach of the EMA 50 which broke back in. This is still considered invalid given the fact we broke back in. The bounce from the support level has the potency to breach the EMA 50 upwards. We will be taking the bet on this idea.

RSI is at 44 with CCI at 40. This indicates both the oscillators are in an over sold market conditions which need to move towards a much bullish side from this region. We also see the oscillators bullish divergence on both the oscillators. Given the market at a solid support zone, along with the bullish divergence on the oscillators, we do anticipate a strong push up from the market. Market dropped down to as little as -250 on CCI, but then, a rebound took place bringing CCI at 44.

Waiting on Chainlink

Jun 02 2022

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