Chainlink Elliott Wave technical analysis [Video]

LINK/USD Elliott Wave technical analysis – Daily chart

• Function: Counter Trend.

• Mode: Corrective.

• Structure: Double Corrective.

• Position: Wave 2.

• Invalidation level: Not defined.

Chainlink trading strategy

In the previous wave I, the price formed an Expanded Diagonal pattern, peaking at $17.97. The retracement wave II formed a Double Zigzag structure, touching the 0.786 Fibonacci retracement level at $11.43.
Now, the price is bouncing back in wave (1) and may currently be in a retracement phase with wave (2) before entering an uptrend in wave (3).
The critical resistance lies around $16.00, which serves as the Bullish Confirmation Level. A break above this level could validate a mid-term upward movement.

Trading strategy highlights

Swing Trading (Short-term):

• Wait for the completion of the wave (2) consolidation.
• Look to enter during wave (3), which could have increased momentum.

Risk management:

• Watch the Invalidation Level near $10.80 to manage downside risk.

LINK/USD Elliott Wave technical analysis – Four-hour chart

• Function: Counter Trend.

• Mode: Corrective.

• Structure: Double Corrective.

• Position: Wave 2.

• Invalidation level: Not defined.

Overview

Same as the Daily Chart – wave I topped at $17.97, wave II ended at $11.43 after a Double Zigzag correction.

Current price movement appears to be wave (1) moving upward, with a potential short-term pullback in wave (2).

Key resistance remains $16.00 – a decisive breakout here would reinforce bullish structure heading into wave (3).

Swing trade strategy

• Await the end of wave (2) retracement before entering into wave (3).

Invalidation zone: Near $10.80

Chainlink Elliott Wave technical analysis [Video]