Trade Recommendation: ChainLink

Our December 31, 2018 trade recommendation for ChainLink (LINK/BTC) hit both targets. They were both achieved on the same day as the market climbed as high as 0.00012694 on January 11, 2019. Those who followed the recommendation grew their investments by almost 70% in less than two weeks.

While ChainLink significantly overshot our target, this is something that we were not surprised to see. We expected the market to generate an all-time high. However, we did not have sufficient data to forecast where the rally might fade. Thus, we settled for a target that was close to its previous all-time high (ATH) of 0.0001197. Even though we left some money on the table, as ChainLink printed a new ATH of 0.000158 on January 22, 2019, we were certain that we can always go long on the market when it pulls back. This opportunity is presenting itself today.

Technical analysis shows that LINK/BTC has taken out resistance of 0.000125 yesterday, February 9. This triggered the breakout from the symmetrical triangle on the 12-hour chart. The pattern suggests the continuation of a trend. It doesn’t take a guru to see that ChainLink is in a strong uptrend. Thus, the breakout marks the end of consolidation and the resumption of the uptrend.

On top of that, the move up enabled LINK/BTC go above the 50 moving average (MA) on the 12H chart. With this move, the 50 MA, 100 MA, and 200 MA are all crawling below the price. They will act as strong supports that would help the market trend higher.

The strategy is to buy on dips as close to 0.000125 as possible. As long as ChainLink trades above this level, bulls will likely gather the momentum to climb to our target of 0.000158.

The process may take less than a month.

Daily Chart of ChainLink/Bitcoin on Binance

As of this writing, the ChainLink/Bitcoin pair is trading at 0.00012874 on Binance.

Summary of Strategy

Buy: As close to 0.000125 as possible.

Target: 0.000158

Stop: 0.00012

 

Disclaimer: The writer owns bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.

Featured image courtesy of Shutterstock.

Kiril is a CFA Charterholder and financial professional with 5+ years of experience in financial writing, analysis and product ownership. He has passed all three CFA exams on first attempt and has a bachelor's degree with a specialty in finance. Kiril’s current focus is on cryptocurrencies and funds, as he does his own crypto research and is a Product Manager at Mitre Media. He also has his personal website, InvestorAcademy.org where he teaches people about the basics of investing. His ultimate goal is to help people with limited knowledge of finance and investments to create investment portfolios easily, and in line with their unique circumstances.