LINKUSD has completed a bullish inverse 4H Head and Shoulders after buyers regained control above the neckline 16 level on Friday’s dips.

I am including the 14th largest cryptocurrency in terms of market capitalization, the Chainlink - LINKUSD.

The US is set to have 5 high impact economic reports in the coming trading week.

The crypto markets in general including Chainlink have continued protecting its gains after Bitcoin held its crucial 67,000 support strongly last Friday.

Assessing LINKUSD’s high timeframe candles:

Monthly Candle: Previous close is a Red Body with a Longer Tail Wick current is a Green Body with a Longer Tail Wick

Weekly Candle: Previous close is a Green Body with a Longer Tail Wick current is a Green Long Lower Shadow

Daily Candle: Previous close is a Green Hammer current is developing a Green Doji

The Chainlink has performed a double monthly April-May bottom after its bulls rerouted the price upwards again.

The 13 level was an important pivotal price level that helped the crypto in going higher this month.

For now the LINKUSD has completed a bullish inverse H and S pattern on the 4H view where a breakaway gap has helped in breaking the neckline resistance at 16 level.

Friday’s dips have flipped the neckline into a support with the help of the bullish 4H FVG and the 50-SMA.

Based upon these recent price actions, I’m speculating that the Chainlink will target the external buy side liquidity levels that are residing in the LH trendline resistance drawn above.

Since price is already exchanging hands in the 2nd shoulder, I would like to open a long position on a potential pullback towards the 16 which becomes a valid support order block already.

If successful, I’m going to take profit at the 20 mark while putting a stop loss at 15 in case it goes wrong.

A minimized risk and a handsome reward of a 4 to 1 setup.

All trade ideas I share are my own views and for my own trades only.

Copy trading and trading directly involve risks.

Chainlink Intraday Analysis and Trading Plan For May 26, 2024

May 26 2024

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