LINKUSD Bearish Setup- Wedge, TD9 sell signal, divergence
LINK has just seen a great bounce off of the resistance highlighted by the green box, coinciding with a perfect buy signal on the TD9 for 2 hour. Now it seems the bulls are exhausted as they failed to close above the previous green TD9 support. After breaking down from the triangle, highlighted in black, it now seems to be retesting that trendline perfectly, as the 1 hour candle turns pink, and we are getting hidden bearish divergence on RSI and stochs at the same time as a bearish wedge.
To me this seems like an ideal sell setup with low risk and a clear target of 3.50, which is also previous support from a lot of wicks. I don't expect it to drop much lower than than due to strong support and the clear range on higher time frames, but if it does then the next resistance will likely be the green box below it.
Please comment if you have any opinions about this.
Good luck!
Love,
Etch
To me this seems like an ideal sell setup with low risk and a clear target of 3.50, which is also previous support from a lot of wicks. I don't expect it to drop much lower than than due to strong support and the clear range on higher time frames, but if it does then the next resistance will likely be the green box below it.
Please comment if you have any opinions about this.
Good luck!
Love,
Etch
Comment:
Still neutral for the moment. For a moment it looked like a hammer reversal might play out on LTF but bulls haven't really taken advantage of it.
Still neutral for the moment. For a moment it looked like a hammer reversal might play out on LTF but bulls haven't really taken advantage of it.
Comment:
however, the black dotted line appears to be acting as resistance.
Comment:
non- hidden bearish divergence starting to form. Could still be invalidated within the next 2 hours, but td is starting to flash red.
Comment:
update: it looks bullish now. I wouldn't short this. Forgot to update yesterday but the wedge I drew was invalid, sorry. Only the end part was a wedge and the initial dump candle hit the target of 8c away from breakout. Luckily I was able to close at the same price as the low of the breakout candle after I realised this. I then flipped to long after reversal signal. Now it's showing bullish divergence on the daily.
Price bounced off of high volume node, so there is still some hope for the bulls that this could be a false breakout. Will wait for 15m close for confirmation of hammer candle.