fxs_header_sponsor_anchor

Chainlink buyers pile in to push LINK to conservative target at $28

  • Chainlink price finds a bottom as buyers step in to prevent further movement south.
  • A Christmas rally is on the table for Chainlink as it eyes a 35% gain.
  • Threats to the downside remain but are likely limited in scope.

Chainlink price is developing an exceptionally bullish pattern on its $0.50/3-box reversal Point and Figure chart. As a result, reaching the entry level of this hypothetical trade setup could see a considerable spike towards the $28 value area.

Chainlink price ready to bounce and spike higher, short sellers likely trapped and feeling the pressure

Chainlink price has a series of ascending higher lows on its Point and Figure chart while also developing a triple-top. Additionally, an ascending triangle pattern has formed, giving a greater probability of a bullish breakout in the near future.

The hypothetical long trade is a buy stop order at $21, a stop loss at $19, and a profit target at $28. This trade setup represents a 3.5:1 reward for the risk. In addition, a trailing stop of two to three boxes would help protect any implied profits post entry.

The $28 target is likely too conservative, but it is based on the Vertical Profit Target Method in Point and Figure Analysis. Buyers may look at taking profit at $28 as it is just above the current bear market trend line. Hitting $28 would convert Chainlink price into a bull market, and the likely selling pressure would result in the first pullback – a good sign for a return to higher prices.

Chainlink $0.50/3-box Reversal Point and Figure Chart

The hypothetical long setup is invalidated if Chainlink price moves below the $14 value area. If that move were to occur, then Chainlink price would be under threat of a flash-crash towards the $9 range.

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.


RELATED CONTENT

Loading ...



Copyright © 2024 FOREXSTREET S.L., All rights reserved.