1984 300TD wagon timing chain check

I just did a valve adjustment and checked my timing chain at the same time. The chain "looks good" (i know very little about it frankly). We were able to lift it off the gear wheel about 1/8 of an inch at one point. I don't know why it would've changed but before we put the cover back on, we were only able to get about 1/16th of an inch off the gear wheel. Does that sound like an acceptable amount of clearance for the chain? Thanks.