It would make sense to be forming a large pennant pattern after the run Chainlink has had in 2019. I expect it to go for a re-test of the upper trendline if we see some bullish price action from Bitcoin. The 2 red resistance lines are the major resistances I'm watching on this move up. I would expect some bigger consolidation after touching one of them. There is large downside risk as we could stay within the pennant fairly easily even with a 10+% move down. Keep that in mind and remember to set a stop if you are making an entry.
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How today goes will be pretty important. LINK did confirm a daily below $1.75, but BTC is starting to get some upward movement. If BTC continues up I don't think we'll see that H&S fulfilled. I'd also feel safer if LINK got back above $1.85.Note
Finally getting some movement. If BTC keeps moving up we're going to the top of the pennant.Note
Surprised we haven't seen more major consolidation yet. Don't underestimate the power of a strong trend change with BTC I suppose! $2.30 is the next major resistance IMO.Note
Finally got our bull break. Didn't see the correction back down to $2.00 which I personally expected, but other than that everything else is on track. I think our next major resistance will be at the pennants trend line in the $2.60-$2.70 area. After being in that $2.60 price range I'm personally going to be waiting for a bull break of that line and confirmation on at least the 4hr and potentially 1d candlestick. I would also look at any major resistances on the other side of that line first as well. I wouldn't trust a further move unless we're over those obstacles.
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From here I would expect some kind of retracement, but with how the market is launching alts I wouldn't be surprised if we did get a breakout from below this line. If so there could be quite a large move but it would be equally as risky.
I'll post a new analysis if I see anything new happening.
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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.