LINK → Chainlink Teacup and Handle Bull Pattern!? Let's Prepare!
Updated
Chainlink is knocking on the door of the Resistance Zone and forming what appears to be a teacup and handle bull pattern! Do we long now? What should our signal to enter a trade be?
How do we trade this? 🤔
Link completed its measured move up to the resistance zone, pulled back, and made another attempt to breach the $16.30 price but failed. If the teacup and handle pattern is truly playing out, we should be witnessing another weaker pullback to somewhere around the $14.30 price area (30EMA). If the price bounces at the 14.30 area, we may in fact be looking at a breakout of the Resistance Zone.
So does that mean we long at the 30EMA? No. Because the probability of profit longing at a resistance zone is low. It's best to wait for the price to break the Resistance Zone, test it for support then long that support as depicted in my analysis. Until then, let's wait on the sidelines and see how this plays out!
💡 Trade Idea 💡
Long Entry: $18.30
🟥 Stop Loss: $16.10
✅ Take Profit: $24.90
⚖️ Risk/Reward Ratio: 1:3
🔑 Key Takeaways 🔑
1. Measured Move Complete.
2. Price near Resistance Zone. Wait for More Price Action.
3. Teacup and Handle Pattern Playing out?
4. Long Setup, Wait for Bounce at 30EMA or Break of Resistance.
5. RSI at 60.00 and above the Moving Average. Bias to Long.
⚠️ Risk Warning! ⚠️
Past performance is not necessarily indicative of future results. You are solely responsible for your trades. Trade at your own risk!
Like 👍 and comment if you found this analysis useful!
How do we trade this? 🤔
Link completed its measured move up to the resistance zone, pulled back, and made another attempt to breach the $16.30 price but failed. If the teacup and handle pattern is truly playing out, we should be witnessing another weaker pullback to somewhere around the $14.30 price area (30EMA). If the price bounces at the 14.30 area, we may in fact be looking at a breakout of the Resistance Zone.
So does that mean we long at the 30EMA? No. Because the probability of profit longing at a resistance zone is low. It's best to wait for the price to break the Resistance Zone, test it for support then long that support as depicted in my analysis. Until then, let's wait on the sidelines and see how this plays out!
💡 Trade Idea 💡
Long Entry: $18.30
🟥 Stop Loss: $16.10
✅ Take Profit: $24.90
⚖️ Risk/Reward Ratio: 1:3
🔑 Key Takeaways 🔑
1. Measured Move Complete.
2. Price near Resistance Zone. Wait for More Price Action.
3. Teacup and Handle Pattern Playing out?
4. Long Setup, Wait for Bounce at 30EMA or Break of Resistance.
5. RSI at 60.00 and above the Moving Average. Bias to Long.
⚠️ Risk Warning! ⚠️
Past performance is not necessarily indicative of future results. You are solely responsible for your trades. Trade at your own risk!
Like 👍 and comment if you found this analysis useful!
Note
LINK attempted to breach the Resistance Zone only to fall back to the 30EMA, as predicted. We're seeing *some* support here, but are we going to get a launch back into resistance? I'm not yet confident we are as there is not enough price action to justify such a bias. We need a good strong bull candle off of this support area to keep the teacup and handle in play. Until we break resistance and test as support, best to wait on the sidelines.
More updates to come as they unfold!
-Joe Dean
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