A 40% correction for Chainlink to $8?

Jun 20, 2024

On the above weekly chart price action finds resistance at market structure, which was first confirmed on March 2022. The recent confirmation of resistance follows a lower high print.

A Head and Shoulders print is now evident. This print occurs as RSI resistance remains active. It is highly likely the Head & Shoulders neckline fails.

A confirmation of the Head and Shoulder print forecasts a further 40% correction, which is exactly at past resistance.

Price action will arrive at $8 should the correction complete. In the big picture (below), the downtrend channel must show support on the mid line. Otherwise price action continues to correct until the $3 area over the next 1 to 2 years.

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The big picture

Aug 2, 2024

Trade active

Aug 5, 2024

Trade closed: target reached

Aug 6, 2024

Note

There are a few messages implying with the close of this idea that price action is now long. That is not supported by the chart.

In actual fact this idea was part of a larger bearish idea, should the $8 target area strike. It did.

Now we have price action forecast of $2