ChainLinkUpdated Chainlink at critical area
After rebounding on the bottom of our long-lasting channel on 9 December, Chainlink got back almost straight to the S2 where it faced a substantial rejection. It is currently holding the S1, but it may not last long. I'm expecting Chainlink to retest the bottom of the channel a second time, and potentially visit areas below it to meet the S3 at 10.93$ before finding significative support to rebound more firmly this time. Should this scenario take place and that we can close a 4H candle with just a wick below the channel to demonstrate strong support, I would then expect upside, with a quick retest of the median of the channel. The median being in confluence with the Pivot at 13.76$, we could expect a cool down at this level. However, in a scenario where the candle was to close below the bottom of the channel, near the S3, I would expect more downside.
Let me know in the comments if you'd like this idea to be updated over time.
Let me know in the comments if you'd like this idea to be updated over time.
Note
Let's start with a correction on my first update, first sentence, where I mingled the S2 and S1. Sorry about that :) Now that it is clarified, let's get to the update:We are now touching the bottom of the channel. The lack of substantial rebound makes me think we will break it on the downside. Potentially testing the daily S3 at 10.96$, or a little bit lower to meet the golden pocket of our Fibonacci (between 10.50$ and 10.80$). The Fibonacci golden pocket is also in confluence with the monthly S1 (10.70$) - see below. So this is a really critical area where I truly anticipate a rebound.
If the aforementioned region does not hold, we have the 200 EMA at 10.16$ and the 200 MA at 10$. The latest has not been tested since the Black Thursday on 12 March.
Note
Very good news, it seems like the channel held. LINk is now going back up and being slightly rejected at the daily S1 (12.69$). If it can break and hold above with a candle close, I would be expecting a test of the monthly pivot (13.65$).
Note
Note that it should ideally hold and close above the 12.80$ level to print a higher low.Note
A test of the daily R1 (13.47$) is imminent.Once tested, I would expect a slight pull back to consolidate before the monthly Pivot at 13.68$ and possibly the median of the channel at 13.83$. The median being almost in confluence with the daily R2, I would expect a temporary rejection at this level.
If the target is reached, the next update will be in another post. Follow me to be alerted.
Note
Additional note to support the above point. There is a RS flip on the diagonal resistance. See below:
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.