Trade Recommendation: ChainLink
ChainLink (LINK/BTC) made fresh highs recently. The cryptocurrency climbed as high as 0.000187 on May 22, 2019. The hype behind the launch of its mainnet may have catalyzed this ascent. However, there’s an adage in trading and investing that says to sell on news. ChainLink’s recent price action proved to be an epitome of this wisdom.
Technical analysis shows that LINK/BTC has broken out of a large falling wedge on the daily chart. The breakout happened on May 16, 2019, when the market took out resistance of 0.000115. This triggered a strong rally that sent the market to a new all-time high of 0.000187 on May 22nd.
At that point, the cryptocurrency was showing signs of weakness. It was trading in overbought territory while the daily candle had a long wick above its body. The writings on the wall told us not the chase the rally. Instead, it’s a good idea to wait for the pullback and the retest. We’re getting that chance now.
The strategy is to buy on dips as close to 0.000106 support as possible. Keep in mind, ChainLink is in a strong uptrend. The falling wedge breakout is proof of this bias. Therefore, one of the best opportunities to enter is when the market converts a former resistance into support. That’s what this trade plan is all about.
As long as the market is above 0.000106, we expect bulls to touch our target of 0.000187.
The process may take less than a month.
Daily Chart of ChainLink/Bitcoin on Binance
Summary of Strategy
Buy: As close to 0.000106 as possible.
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.