Our previous trade from 1.63 and 1.83 to 2.5 on link worked well. We captured a lot of upside, but LINK didn't go up nearly where we wanted it to. The resulting pattern is not a good one. While LINK could easily form some type of bottom here and move up. There are some things playing against it right now on the larger weekly time frame. The first to note is the MACD, it's cross back down coinciding with the lower high and indicates more of a move down. RSI also seems weak and that more downside is in the works. If we look at the ABC pattern, or ABCD pattern, whatever you want to call it. It also indicates that the next move will take us to the .75 cent range. Which really gives us pause for taking a long entry here for anything but a scalp trade. It also form a nice harmonic pattern at .75 cents, or in that area.
If I am going to enter at this $1.75 area I want to see it form a better bottom before I do. I think the best thing to do right now is sit on your hands before you enter again.
Cheers,
-Sherem
If I am going to enter at this $1.75 area I want to see it form a better bottom before I do. I think the best thing to do right now is sit on your hands before you enter again.
Cheers,
-Sherem
There is not doubt that the $1.75 level was a great trade. it rallied hard, a lot more then a lot of people expected. Even with this rally, do you dump now and take your profit or wait it out? You could argue it based out and it's going to move much higher from here, and you could equally argue that it is going to resume lower as my chart implies. Which leads me to want more data, more chart formations before i make a decision and take a positions.
It's also interesting to note what LINK/ETH is doing. Is it forming a massive bull flag? or just a lower high that will take link/usd down with it? hard to say and had to sit on my hands, but thats the plan for the time. Will update with more when I see something.