Large WEEKLY bull flag forming on LINK|USD (0.618 RETRACE MET)
I'm back with my first chart since May 17th where i stated that we may see a huge move in bitcoin in June to Early August if you are interested in that idea it will be linked in the related idea section below. Now on to the CHAINLINK analysis.
On the weekly we are forming a bullflag on LINK that is very much visible on the Heikin Ashi candles and is fairly visible on the traditional candlesticks. We are also still very much inside our up-sloping (Parallel-Channel) along with that link as hit the 0.618 retace and bounced and is now trying to break above the downsloping resistance i can see us maybe trying to double bottom before actually breaking to the upside.
The 0.618 fib lvl here has alot of support, one of which being that it's a lvl that has some weekly opens and closes; the other being that the 75% line of our up-sloping parallel channel is confluent with the 0.618.
Why use Heikin Ashi? Well in this case it just makes the chart look much cleaner and overall gives more visibility to any patterns we may think we see on the traditional candlesticks.
One the daily we have triple MACD Hidden Bullish Divergence which is a sign of continuation in bullish price action.
If you are interested in viewing the daily candlestick chart here's a screencap. This shows the hidden divergence and what the daily price action looks like on the traditional candlesticks:
How will i be trading this? naturally i will continue to buy near the 618 and will begin to partially sell as we hit weekly candle close highs around the $2.8-$3.15 area but i personally plan to hold most of my link until we reach the top of our parallel channel on the daily screenshot around the $5.50 mark overall im very bullish on LINK and my stops will be much steeper and my targets much higher than the targets i listed on the chart but for anyone reading this and only looking for a short term trade they should adjust accordingly.
On the weekly we are forming a bullflag on LINK that is very much visible on the Heikin Ashi candles and is fairly visible on the traditional candlesticks. We are also still very much inside our up-sloping (Parallel-Channel) along with that link as hit the 0.618 retace and bounced and is now trying to break above the downsloping resistance i can see us maybe trying to double bottom before actually breaking to the upside.
The 0.618 fib lvl here has alot of support, one of which being that it's a lvl that has some weekly opens and closes; the other being that the 75% line of our up-sloping parallel channel is confluent with the 0.618.
Why use Heikin Ashi? Well in this case it just makes the chart look much cleaner and overall gives more visibility to any patterns we may think we see on the traditional candlesticks.
One the daily we have triple MACD Hidden Bullish Divergence which is a sign of continuation in bullish price action.
If you are interested in viewing the daily candlestick chart here's a screencap. This shows the hidden divergence and what the daily price action looks like on the traditional candlesticks:
How will i be trading this? naturally i will continue to buy near the 618 and will begin to partially sell as we hit weekly candle close highs around the $2.8-$3.15 area but i personally plan to hold most of my link until we reach the top of our parallel channel on the daily screenshot around the $5.50 mark overall im very bullish on LINK and my stops will be much steeper and my targets much higher than the targets i listed on the chart but for anyone reading this and only looking for a short term trade they should adjust accordingly.
Comment:
keep you eyes on link it seem we had a breakout of the flag but we might be looking for a retest. I would like a re-test of our previous entry areas watch for the 2.05 area for signs of bullish divergence to confirm entry
Trade closed: target reached
I am now completely out of LINK and in it's place have been trading LTC. I actually uploaded an idea on LTCBTC quite awhile ago and that trade is going pretty well at the moment.
But as for this Link trade i thin it's safe to call this one a failure.
It still maybe worth entering another position into LINk on a later date maybe if it hits a deeper FIb lvl with some divergence and maybe a support zone.