LINKBTC | Price Discovery | Bullish Price Action | Trade Setup
Updated
Today's analysis – LINKBTC – consolidating near structural resistance, attempting to break out to new all-time highs.
Points to consider:
- Ascending triangle (bullish pattern)
- Strong price action
- S/R flip (trend continuation)
- Price discovery (blue-sky breakout)
- 20 EMA (visual guide)
- Declining volume
- Oscillators holding above 50
LINKBTC continues to hold and consolidate near the neckline of its multi-month ascending triangle (considered a bullish chart pattern).
Although price has failed to break structural resistance, bulls are quick to buy up the rejection, indicating strength in the price action.
An S/R flip at structural resistance will form a higher high in the chart and allow for a further trend continuation.
Trend continuation will also indicate new all-time highs for LINKBTC as it enters price discovery mode.
The 20 EMA acts as a visual guide upon strong trend continuation as it is respected by price action. Also assisting in trade management by helping define risk (trailing stop loss).
Volume has been declining and remaining below average. Historically, an inflow of volume has coincided with bullish price action, indicative of an influx being probable at the retest structural resistance.
Both the RSI and stochastics are recovering from overbought conditions as they hold above 50 indicating strength and momentum remaining within the market. Oscillators need to range above 50 to support the bullish bias.
Overall, in my opinion, a breakout is imminent. An S/R flip re-test of structural resistance with volume follow through validates a conservative entry for a long trade.
What are your thoughts?
If you’ve read this far - thank you for following my work!
Points to consider:
- Ascending triangle (bullish pattern)
- Strong price action
- S/R flip (trend continuation)
- Price discovery (blue-sky breakout)
- 20 EMA (visual guide)
- Declining volume
- Oscillators holding above 50
LINKBTC continues to hold and consolidate near the neckline of its multi-month ascending triangle (considered a bullish chart pattern).
Although price has failed to break structural resistance, bulls are quick to buy up the rejection, indicating strength in the price action.
An S/R flip at structural resistance will form a higher high in the chart and allow for a further trend continuation.
Trend continuation will also indicate new all-time highs for LINKBTC as it enters price discovery mode.
The 20 EMA acts as a visual guide upon strong trend continuation as it is respected by price action. Also assisting in trade management by helping define risk (trailing stop loss).
Volume has been declining and remaining below average. Historically, an inflow of volume has coincided with bullish price action, indicative of an influx being probable at the retest structural resistance.
Both the RSI and stochastics are recovering from overbought conditions as they hold above 50 indicating strength and momentum remaining within the market. Oscillators need to range above 50 to support the bullish bias.
Overall, in my opinion, a breakout is imminent. An S/R flip re-test of structural resistance with volume follow through validates a conservative entry for a long trade.
What are your thoughts?
If you’ve read this far - thank you for following my work!
Trade active
Trailing SL below 21 EMA, worst-case scenario - double-digit profit.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.