LINK → Moon or Doom? This Analysis Provides Some Clear Answers.Chainlink slammed into the Resistance Zone after a beautifully executed measured move up. We're now in a minor pullback hovering just below resistance. Should we enter a trade here?
How do we trade this?
This is not the right moment to enter a trade. The price action screams bullish; A measured move up, showing support on the 30EMA, RSI around 50.00 with plenty of room to go up. But we're right at the resistance zone and without a clear signal that we're going to break out, it's too risky to long.
Likewise, we don't have a sell signal or any price action indicating that we're going to reverse. Bitcoin as a leading indicator is struggling to break its Weekly Resistance which could impact Chainlink's price action. Until we have a clear signal either way, we should remain on the sidelines. Here are a couple of potential trade ideas if the price breaks in either direction.
Trade Ideas
Long Entry : $19.12
Stop Loss: $16.92
Take Profit: $23.53
Risk/Reward Ratio: 1:2
Short Entry : $12.90
Stop Loss: $15.10
Take Profit: $8.49
Risk/Reward Ratio: 1:2
Key Takeaways
1. Measured Move Complete. Pullback in Progress.
2. Price near Resistance Zone. Wait for More Price Action.
3. Short Setup, Wait for Bear Signal Bar and Confirmation.
4. Long Setup, Wait for Break of Resistance Zone.
5. RSI near 58.00 and below Moving Average. Bias to Short.
You are solely responsible for your trades, trade at your own risk!
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