Chainlink Points To 25 As Potential Target.
Chainlink has generated a new swing trade long signal off of the 15.50 area. This price action is inline with the Bitcoin buy signal as well. I shared an entry price in my previous analysis on here at 11750 but follow through has been lacking. While that trade is still in play, earlier in the week, Bitcoin generated yet another long setup at 11,650. So at this point, I simply hold the position and see if we get bullish follow through.
While Chainlink, Litecoin, XTZ and a few others have all generated a similar buy signal, they are NOT likely to run on their own. Without Bitcoin leadership, they will gyrate into no where. This is why we make it a point to remind our followers to be very careful not to overload positions in this space. Essentially, being long any of these is the same as being long Bitcoin. In other words it is all the same trade (just like buying EUR/USD and GBP/USD).
The potential move is where the positions and risks are not the same. Based on recent price structure, it is within reason for Chainlink to test the 25 area IF the 20 high is taken out. With this in mind, I would place profit targets for at least 2/3's of the position between 20 and 25. IF any bearish reversal candles appear below 20, that would prompt me to reduce the position by 1/3 in order to reduce risk in case of another failed high or fake out.
While Chainlink, Litecoin, XTZ and a few others have all generated a similar buy signal, they are NOT likely to run on their own. Without Bitcoin leadership, they will gyrate into no where. This is why we make it a point to remind our followers to be very careful not to overload positions in this space. Essentially, being long any of these is the same as being long Bitcoin. In other words it is all the same trade (just like buying EUR/USD and GBP/USD).
The potential move is where the positions and risks are not the same. Based on recent price structure, it is within reason for Chainlink to test the 25 area IF the 20 high is taken out. With this in mind, I would place profit targets for at least 2/3's of the position between 20 and 25. IF any bearish reversal candles appear below 20, that would prompt me to reduce the position by 1/3 in order to reduce risk in case of another failed high or fake out.
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