Hi friends! Welcome to Litecoin Chart Update to trading idea published on March 9.
The recent rally we've seen on $LTC which brought the price 4% higher has ignored the divergence signal and may have liquidated many shorts at this point but this signal was not invalidated. Instead a double divergence appeared (as shown on the chart) as a result of the rally which means the previous signal was further strengthened. Double divergence are stronger signals than a regular divergence. Relatedly the of the last rally was very weak which signifies a decrease in the momentum.
We are seeing two probable scenarios for $LTC long term. Both scenarios requires a correction at the 50% fib level of the entire move (see confluence between support line blue and support line black).
Scenario 1 (Green)-This scenario was derived from a possibility that $LTC is in an accumulation on an expanding channel which will be very for $LTC. This could propel $LTC to 2.618 Fib extention and 3.618 Fib extension of the previous wave 1. This move will result to 80% rally from our downside target.
Scenario 2 (Blue)- This scenario works on the premise that the upside objective for $LTC has already been reached and requires a correction before the resumption of a larger . This means that we will likely have a short bounce at 0.5 fib level before we could reach the downside target at 0.786 fib level.
IMO scenario blue is more likely to playout. That's it friends.
Share you thoughts with me in the comment section. Thanks
This is just a guide, not a trading advise.
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-Your Poop Trader