ChainLink retraces to 6400 sats as it re-enters its channel.
After an amazing run where ChainLink went +300% in a couple of months, it broke out upwards of its months long parallel channel. However, as hype for the announcement of the team at DevCon4 was growing, a lot of short term investors entered which gave the impuls for a sell-the-news drop after the announcement was made.
LINK retested the upper trendline once and bounced, but bulls lacked the power to continue the upwarde trend so a second test was made, and as I indicate on the chart we full through after a short period of indecisiveness.
Now LINK has re-entered its channel and will - barring a surprise announcement of sizable news - retest the lower trendline of its channel. To estimate where and when this will happen, I looked at the previous resistance which was the region around 6400 sats. For a time-estimate, this gives us the end of november.
Also, on a more detailed view, we can see the previous support has become resistance.
LINK retested the upper trendline once and bounced, but bulls lacked the power to continue the upwarde trend so a second test was made, and as I indicate on the chart we full through after a short period of indecisiveness.
Now LINK has re-entered its channel and will - barring a surprise announcement of sizable news - retest the lower trendline of its channel. To estimate where and when this will happen, I looked at the previous resistance which was the region around 6400 sats. For a time-estimate, this gives us the end of november.
Also, on a more detailed view, we can see the previous support has become resistance.
Comment:
The bulls are not going to give up without a fight. Using the 2h trendline they are planning one final push it seems.
Comment:
Bulls broke out and I got stopped out of the short at 7650 sats, as indicated with the third arrow. It's retesting the upper trendline. The bull is strong with LINK it seems, but as the 2h trendline rises it catches up with the top of the channel a decision will have to be made: Is a new impuls upwards possible or not?
Comment:
Comment:
The 2h trendline has held so far... but a tight top loss is suggested as this could get ugly.
Comment:
Comment:
Took some detours but we got there.
Trade closed: target reached
Comment:
With high volume and extreme volatility LINK was acting up again. I searched and found the resistance of the downtrend again on the 2H chart. I'm keeping an eye out and look for a decisive break out of the downtrend OR below the month long uptrend before taking a position.