Historically Link has been brilliant to trade from a technicals perspective.
You can see the prior consolidation channel and the 2 x Head and Shoulder patterns that played out beautifully. You can also see how the green circles were great entry levels
At present we appear to be in a consolidation box awaiting breakout.
I am leaning Long Term Long for the following reasons:
- On Balance Volume is increasing
- Break above 50 week MA
- RSI pressing upwards
- 90% correction in price since May 2021 (when we broke RSI resistance line, important to watch for this and exit trade if it occurs).
- LINK/BTC is also in a downward channel and looks ready to break out
- You will see from my recent BTC Dominance chart i believe we will have a slight pull back in dominance over coming weeks offering ETH and Alts an opportunity to make some gains
- The prior patterns, the H&S, Parallel channel and subsequent H&S top, these all lasted between 52 and 72 weeks. We are in this current consolidation pattern almost 50 weeks. It is probable that we get a break out within 2 - 22 weeks.
Trade Management (swing trade)
- A retest of the 50 MA would be a reasonable entry. Bottom of the box event better.
- Break below box, exit trade.
- Trade timeline 2 - 22 weeks (explained above)
- If already in the trade I would be keen to exit the trade once in oversold territory on the weekly RSI (We can always reenter it later).
PUKA
You can see the prior consolidation channel and the 2 x Head and Shoulder patterns that played out beautifully. You can also see how the green circles were great entry levels
At present we appear to be in a consolidation box awaiting breakout.
I am leaning Long Term Long for the following reasons:
- On Balance Volume is increasing
- Break above 50 week MA
- RSI pressing upwards
- 90% correction in price since May 2021 (when we broke RSI resistance line, important to watch for this and exit trade if it occurs).
- LINK/BTC is also in a downward channel and looks ready to break out
- You will see from my recent BTC Dominance chart i believe we will have a slight pull back in dominance over coming weeks offering ETH and Alts an opportunity to make some gains
- The prior patterns, the H&S, Parallel channel and subsequent H&S top, these all lasted between 52 and 72 weeks. We are in this current consolidation pattern almost 50 weeks. It is probable that we get a break out within 2 - 22 weeks.
Trade Management (swing trade)
- A retest of the 50 MA would be a reasonable entry. Bottom of the box event better.
- Break below box, exit trade.
- Trade timeline 2 - 22 weeks (explained above)
- If already in the trade I would be keen to exit the trade once in oversold territory on the weekly RSI (We can always reenter it later).
PUKA
Comment:
Link is well under its 200 day and 200 week SMA and has chosen a direction and IMO is not a good trade. This is a wait and see how much damage will be done. WE could wait until the RSI resistance line is hit.
