After forming the Shark pattern in Sep 2019 the price action of Chainlink took a very powerful bullish divergence form the potential reversal zone of this bullish Shark and made more than 107% bullish Move Upto Nov 2019 the price action starting moving within a falling wedge which is very steep and at this time the price action is hitting the resistance of the wedge the long spike on 18 Dec show that the bears are very weak $1.73.
The priceline also has hit the Bollinger bands’s lower band support and the Bollinger bands is expanding to pave the way for Chainlink’s priceline.
Volume profile of complete falling wedge is showing less interest below $1.73.
On 12hr chart all indicators are bullish and if we see on day chart the price action is at the support of Bollinger bands.
Moving average convergence divergence (MACD) is giving bullish signals by turning weak bearish from strong bearish.
Relative Strength Index (RSI) was oversold now turning bullish and Stochastic has also given bull cross from oversold zone.
Where we should buy?
The question is if the price action is hitting at the resistance then where we should buy? Coz there are chances that the price action again move down to hit the support again.
The answer is that here we should wait for the price action to breakout the resistance and then buy coz after breakout the price action can take more bullish move at least upto POC of volume profile which is at 2.21 and it can also hit the projection area of tail to support of wedge from 0.382 to 0.786 Fibonacci which is from $2.25 to $2.84.
In this case our stop loss will be the resistance of this wedge coz once the priceline will breakout the resistance then the same resistance will be playing role of support for the price action.
Atif Akbar (moon333)