Long

LINK Pennant

Updated

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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Be mindful of this potential H&S. A pennant might not be the pattern LINK is trying to form. I'd be concerned this is playing out if we confirm a daily candle below $1.75.

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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.

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Finally getting some movement. If BTC keeps moving up we're going to the top of the pennant.

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Great move so far. Watching this resistance. RSI also getting into overbought territory on bigger time frames. Would make for a good spot to consolidate.

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some consolidation could be imminent if we don't break that 5min high.

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Flirting with on of the 2 major resistances. I'd like to see us re-test $1.95-1.98 and then continue up. If the next hour can't break the high of this hour we'll almost certainly consolidate.

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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.

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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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Target hit! I Hope my analysis was helpful in some way.

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.

Dtradess

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